Finance Act 2000

Interpretation of Chapter IV of Part XIV U.K.

5 (1) Amend section 630 as follows. U.K.

(2) In subsection (1) (definitions) in the definition of “approved”—

(a) in paragraph (a) (approved schemes), after “scheme” insert “ (other than an approved retirement benefits scheme) ”; and

(b) in paragraph (b) (approved arrangements), after “means” insert “ (i) ” and at the end of the sub-paragraph so formed add “; or

(ii) made in accordance with a scheme which is for the time being an approved converted scheme but which was, when the arrangements were made, an approved retirement benefits scheme;”.

(3) In subsection (1), in the definition of “pension date” after “means” insert “ (subject to section 638ZA) ”.

(4) Insert the following definitions at the appropriate places in subsection (1)—

(a) “ “approved converted scheme” means an approved personal pension scheme which is such a scheme by virtue of paragraph 3(2)(b) of Schedule 23ZA;” ;

(b) “ “approved retirement benefits scheme” means a retirement benefits scheme approved under Chapter I of this Part; ”;

(c) “ “the earnings threshold” for any year of assessment is £3,600; ”;

(d) “ “higher level contributions”, in the case of any year of assessment, means contributions in excess of the earnings threshold for the year; ”;

(e) “ “the personal pension fund”, in the case of any personal pension arrangement and an individual, means the accrued rights to which the individual is entitled conferring prospective entitlement to benefits under the arrangement; ”;

(f) “ “retirement benefits scheme” has the same meaning as in Chapter I of this Part (see section 611); ”.

(5) After subsection (1) insert—

“(1A) The Treasury may by order amend the definition of “the earnings threshold” in subsection (1) above for any year of assessment by varying the amount there specified.”.

(6) In subsection (2) (annual amount of annuity which would have been purchasable)—

(a) in paragraph (a), for the words from “fund” to “him” substitute “ personal pension fund ”; and

(b) at the end add—

“Where a lump sum falls to be paid on the date in question, the reference is to the value of the personal pension fund after allowing for that payment.”.

(7) Omit subsection (3) (whose effect is reproduced by sub-paragraphs (4)(e) and (6)).

(8) Paragraphs (c) and (d) of sub-paragraph (4) have effect for the year 2001-02 and subsequent years of assessment.