PART 3 U.K.

Modification of Schedule 29 U.K.

15.—(1) Schedule 29 is modified as follows.

(2) In paragraph 1 after sub-paragraph (4) insert—

[F1 “(4A)  In determining whether all or part of the member’s lifetime allowance is available—

(a) there shall be disregarded any amount treated as crystallising by virtue of a relevant BCE; but

(b) the amount of the allowance available shall be reduced by the amount determined in accordance with sub-paragraph (4B) or (4C), as the case may require.

(4B) Where benefit crystallisation event 8 has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a) the referable portion of any previous pension commencement lump sum paid to or in respect of the member by a recognised overseas pension scheme;

[F2 (aa) the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme;] and

(b) the referable portion of the amount which would have crystallised by virtue of the member becoming entitled to a pension, had the scheme paying it been a registered pension scheme [F3 and disregarding paragraph 2 of Schedule 32.]

(4C) Where the paragraph 15 BCE has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a) the referable portion of any previous pension commencement lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;

[F4 (aa) the referable portion of any previous uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;] and

(b) in respect of any pension to which the member has become entitled since the paragraph 15 BCE occurred, the referable portion of the amount which would have crystallised by virtue of the member’s becoming entitled to the pension, had the scheme paying it been a registered pension scheme [F5 and disregarding paragraph 2 of Schedule 32.”].]

(3) In paragraph 2—

(a) in sub-paragraph (6) for the definition of AAC substitute—

[F6 “AAC is the aggregate of—

(a) the amounts crystallised by each benefit crystallisation event (other than a relevant BCE) which has occurred in relation to the member before the member becomes entitled to the lump sum on each occasion on which entitlement to a pension arises[F7 , as adjusted under sub-paragraph (7)]; and

(b) if a relevant BCE has occurred, RP.]

[F8 RP is the referable portion of the amount which would have crystallised, had the scheme paying it been a registered pension scheme and disregarding paragraphs 2 and 15A of Schedule 32, in respect of any previous pension commencement lump sum [F9 or previous uncrystallised funds pension lump sum] or pension to which the member became entitled since the relevant BCE occurred, as adjusted under sub-paragraph (7) (but excluding any amount included in paragraph (a)).]  ”;

[F10 (aa) in sub-paragraph (7) for “the relevant amount” substitute “the amount which is, or would have, crystallised”;]

(b) [F11 after sub-paragraph (7)] insert—

[F12 “(7ZA)] The member’s becoming entitled to a pension commencement lump sum, [F13 or to an uncrystallised funds pension lump sum,] or to a pension, as mentioned in [F14 the definition of RP] in [F15 sub-paragraph (6)] shall be treated as a benefit crystallisation event for the purposes of sub-paragraph (7).”.

[F16 (c) after sub-paragraph (7A) insert—

“(7B) But sub-paragraph (7A)(b) does not apply to anything which, but for paragraph 2 or 15A of Schedule 32, would have constituted a relevant BCE.”]

[F17 (3A) In paragraph 3, after sub-paragraph (7) insert—

“(7ZA) Where a relevant BCE has occurred in relation to the member, sub-paragraph (6) has effect as if for the definition of “AC” in sub-paragraph (7) there were substituted—

““AC” is —

(a)

in a case where the member becomes entitled to the pension before reaching the age of 75, the referable portion of the amount that, had the scheme been a registered pension scheme, would have crystallised by reason of the member becoming entitled to the pension, disregarding paragraph 3 of Schedule 32, and

(b)

in a case where the member becomes entitled to the pension after reaching that age, the referable portion of the amount that would have been so crystallised (disregarding that paragraph) but for paragraph 2 of that Schedule, had the scheme been a registered pension scheme. ””]

(4) In paragraph 4—

(a) in sub-paragraph (1)(a) after “registered medical practitioner” insert “or a recognised medical practitioner”;

(b) at the end of the paragraph add—

“(4) In sub-paragraph (1) “recognised medical practitioner” means a medical practitioner practising outside the United Kingdom who is authorised, licensed or registered to practise medicine in the country or territory, outside the United Kingdom, in which either the scheme or the member is resident.

[F18 (5) In determining whether all or part of the member’s lifetime allowance is available—

(a) there shall be disregarded any amount treated as crystallising by virtue of a relevant BCE; but

(b) the amount of the allowance available shall be reduced by the amount determined in accordance with [F19 sub-paragraph (6) or (7)], as the case may require.

(6) Where benefit crystallisation event 8 has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a) the referable portion of any previous pension commencement lump sum paid to or in respect of the member by a recognised overseas pension scheme;

[F20 (aa) the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme;]and

(b) the referable portion of the amount which would have crystallised by virtue of the member becoming entitled to a pension, had the scheme paying it been a registered pension scheme.

(7) Where the paragraph 15 BCE has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a) the referable portion of any earlier pension commencement lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;

[F21 (aa) the referable portion of any earlier uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;] and

(b) in respect of any pension to which the member has become entitled since the paragraph 15 BCE occurred, the referable portion of the amount which would have crystallised by virtue of the member’s becoming entitled to the pension, had the scheme paying it been a registered pension scheme [F22 and disregarding paragraph 2 of Schedule 32.”].]

[F23 (4A) In paragraph 4A (uncrystallised funds pension lump sums) after sub-paragraph (2) insert—

“(2A) In determining for the purposes of sub-paragraph (1)(b) whether all or part of the member's lifetime allowance is available—

(a) disregard any amount treated as crystallising by virtue of a relevant BCE, and

(b) the amount of the allowance available is reduced by the amount determined in accordance with sub-paragraph (2B) or (2C), as the case may require.

(2B) Where benefit crystallisation event 8 has occurred, the member's lifetime allowance that is available is reduced by the aggregate of—

(a) the referable portion of any previous pension commencement lump sum paid to or in respect of the member by a recognised overseas pension scheme,

(b) the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme, and

(c) the referable portion of the amount which would have crystallised by virtue of the member becoming entitled to a pension, had the scheme paying it been a registered pension scheme and disregarding paragraph 2 of Schedule 32.

(2C) Where the paragraph 15 BCE has occurred, the member's lifetime allowance that is available is reduced by the aggregate of—

(a) the referable portion of any earlier pension commencement lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred,

(b) the referable portion of any earlier uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred, and

(c) in respect of any pension to which the member has become entitled since the paragraph 15 BCE occurred, the referable portion of the amount which would have crystallised by virtue of the member's becoming entitled to the pension, had the scheme paying it been a registered pension scheme and disregarding paragraph 2 of Schedule 32.”]

(5) In paragraph 5(1)(c) after “benefit crystallisation event” insert—

• [F24 “, other than an event which constitutes a relevant BCE,”].

(6) At the end of paragraph 7 add—

[F25 “(6)  In determining whether all or part of the member’s lifetime allowance is available—

(a) there shall be disregarded any amount treated as crystallising by virtue of a relevant BCE; but

(b) the amount of the allowance available shall be reduced by the amount determined in accordance with sub-paragraph (7) or (8), as the case may require [F26 and disregarding paragraph 2 of Schedule 32.]

(7) Where benefit crystallisation event 8 has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a) the referable portion of any previous pension commencement lump sum paid to or in respect of the member by a recognised overseas pension scheme; and

[F27 (aa) the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme;]

(b) the referable portion of the amount which would have crystallised by virtue of the member becoming entitled to a pension, had the scheme paying it been a registered pension scheme [F28 and disregarding paragraph 2 of Schedule 32.]

(8) Where the paragraph 15 BCE has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a) the referable portion of any earlier pension commencement lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred; and

[F29 (aa) the referable portion of any earlier uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;]

(b) in respect of any pension to which the member has become entitled since the paragraph 15 BCE occurred, the referable portion of the amount which would have crystallised by virtue of the member’s becoming entitled to the pension, had the scheme paying it been a registered pension scheme [F30 and disregarding paragraph 2 of Schedule 32.”].]

(7) At the end of paragraph 10 add—

[F31 “(4)  In determining whether all or part of the member’s lifetime allowance is available—

(a) there shall be disregarded any amount treated as crystallising by virtue of a relevant BCE; but

(b) the amount of the allowance available shall be reduced by the amount determined in accordance with sub-paragraph (5) or (6), as the case may require.

(5) Where benefit crystallisation event 8 has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a) the referable portion of any previous pension commencement lump sum paid to or in respect of the member by a recognised overseas pension scheme;

[F32 (aa) the referable portion of any previous uncrystallised funds pension lump sum paid to or in respect of the member by a recognised overseas pension scheme;] and

(b) the referable portion of the amount which would have crystallised by virtue of the member becoming entitled to a pension, had the scheme paying it been a registered pension scheme [F33 and disregarding paragraph 2 of Schedule 32.]

(6) Where the paragraph 15 BCE has occurred, the member’s lifetime allowance that is available shall be reduced by the aggregate of—

(a) the referable portion of any earlier pension commencement lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;

[F34 (aa) the referable portion of any earlier uncrystallised funds pension lump sum to which the member became entitled under a relevant non-UK scheme since the paragraph 15 BCE occurred;] and

(b) in respect of any pension to which the member has become entitled since the paragraph 15 BCE occurred, the referable portion of the amount which would have crystallised by virtue of the member’s becoming entitled to the pension, had the scheme paying it been a registered pension scheme [F35 and disregarding paragraph 2 of Schedule 32.”].]

(8) In paragraph 11 after sub-paragraph (b) insert—

[F36 “(bb) it is not paid from the relevant transfer fund of a qualifying recognised overseas pension scheme,

(bc) it is not paid from the UK tax-relieved fund of a relevant non-UK scheme,”].

(9) In paragraph 4(1)(a), and paragraph 19(1)(d) and (2)(e) for “scheme administrator” substitute “scheme manager”.

[F37 (9A) In paragraph 12 (interpretation of Part 1), after sub-paragraph (1A) insert—

“(1B) But sub-paragraph (1A)(b) does not apply to anything which, but for paragraph 2 of Schedule 32, would have constituted a relevant BCE.”]

[F38 (10) After paragraph 12 add—

“Interpretation of Part 1 – Non-UK Schemes

12A.— (1) The referable portion of a lump sum, pension or an amount which is or would have been crystallised is—

(a) in a case where benefit crystallisation event 8 has occurred, the extent to which it is referable to the member’s relevant transfer fund; or

(b) in a case where the paragraph 15 BCE has occurred, the extent to which it is referable to the member’s UK tax-relieved fund.

(2) In this Part—

“the paragraph 15 BCE” means the benefit crystallisation event treated as occurring by virtue of paragraph 15 of Schedule 34;

“relevant BCE” means—

(a)

benefit crystallisation event 8; or

(b)

the paragraph 15 BCE;

“relevant transfer fund” shall be construed in accordance with paragraph 4(2) of Schedule 34;

“UK tax-relieved fund” shall be construed in accordance with paragraph 3(2) of Schedule 34.”].

Textual Amendments

F1 Words in reg. 15(2) substituted (13.8.2009) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2009 (S.I. 2009/2047), regs. 1(1), 3

F2 Words in reg. 15(2) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(4) (with Sch. 1 para. 96(16)(b))

F3 Words in reg. 15(2) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(2)(a)

F4 Words in reg. 15(2) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(5) (with Sch. 1 para. 96(16)(b))

F5 Words in reg. 15(2) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(2)(b)

F6 Words in reg. 15(3) substituted (13.8.2009) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2009 (S.I. 2009/2047), regs. 1(1), 4(a)

F7 Words in reg. 15(3) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(3)(a)(i)

F8 Words in reg. 15(3) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(3)(a)(ii)

F9 Words in reg. 15(3)(a) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(6) (with Sch. 1 para. 96(16)(b))

F10 Reg. 15(3)(aa) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(3)(b)

F11 Words in reg. 15(3)(b) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(3)(c)(i)

F12 Word in reg. 15(3)(b) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(3)(c)(ii)

F13 Words in reg. 15(3)(b) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(7) (with Sch. 1 para. 96(16)(b))

F14 Words in reg. 15(3)(b) substituted (13.8.2009) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2009 (S.I. 2009/2047), regs. 1(1), 4(b)

F15 Words in reg. 15(3)(b) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(3)(c)(iii)

F16 Reg. 15(3)(c) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(3)(d)

F17 Reg. 15(3A) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(4)

F18 Words in reg. 15(4)(b) substituted (13.8.2009) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2009 (S.I. 2009/2047), regs. 1(1), 5

F19 Words in reg. 15(4)(b) substituted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(5)(b)

F20 Words in reg. 15(4)(b) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(8) (with Sch. 1 para. 96(16)(b))

F21 Words in reg. 15(4)(b) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(9) (with Sch. 1 para. 96(16)(b))

F22 Words in reg. 15(4)(b) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(5)(c)

F23 Reg. 15(4A) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(10) (with Sch. 1 para. 96(16)(b))

F24 Words in reg. 15(5) substituted (13.8.2009) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2009 (S.I. 2009/2047), regs. 1(1), 6

F25 Words in reg. 15(6) substituted (13.8.2009) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2009 (S.I. 2009/2047), regs. 1(1), 7

F26 Words in reg. 15(6) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(6)(a)

F27 Words in reg. 15(6) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(11) (with Sch. 1 para. 96(16)(b))

F28 Words in reg. 15(4)(b) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(5)(d)

F29 Words in reg. 15(6) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(12) (with Sch. 1 para. 96(16)(b))

F30 Words in reg. 15(6) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(6)(b)

F31 Words in reg. 15(7) substituted (13.8.2009) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2009 (S.I. 2009/2047), regs. 1(1), 8

F32 Words in reg. 15(7) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(13) (with Sch. 1 para. 96(16)(b))

F33 Words in reg. 15(7) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(7)(a)

F34 Words in reg. 15(7) inserted (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(14) (with Sch. 1 para. 96(16)(b))

F35 Words in reg. 15(7) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(7)(b)

F36 Words in reg. 15(9) substituted (13.8.2009) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2009 (S.I. 2009/2047), regs. 1(1), 9

F37 Words in reg. 15(9A) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2012 (S.I. 2012/1795), regs. 1(1), 6(8)

F38 Reg. 15(10) added (13.8.2009) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2009 (S.I. 2009/2047), regs. 1(1), 10

Commencement Information

I1 Reg. 15 in force at 6.4.2006, see reg. 1(1)