Part 9Pension income
CHAPTER 15ALump sums under registered pension schemes
Allowances
F1637TSection 637S: multiple lump sum death benefits paid
(1)
This section applies where two or more relevant benefit crystallisation events within section 637S(2)(a)(ii) occur in relation to an individual.
(2)
The relevant benefit crystallisation events are to be treated for the purposes of section 637S as occurring simultaneously—
(a)
immediately before the individual’s death, and
(b)
immediately after any pension commencement lump sum to which the individual becomes entitled immediately before death by virtue of section 166(2) of FA 2004 (lump sum rule).
(3)
In the application of section 637S for the purpose of determining how much of the individual’s lump sum and death benefit allowance is available on the occurrence of any of the relevant benefit crystallisation events mentioned in subsection (1)—
(a)
the reference in subsection (3) of that section to the whole of the individual’s lump sum and death benefit allowance is to the relevant proportion of that allowance, and
(b)
the reference in subsection (4) of that section to so much of the individual’s lump sum and death benefit allowance as is left after deducting the previously-used amount is to the relevant proportion of so much of that allowance as is left after deducting that amount.
(4)
In subsection (3), “the relevant proportion” means—
where—
A is the amount of the lump sum death benefit the payment of which constitutes the relevant benefit crystallisation event in question;
B is the aggregate of the amounts of each lump sum death benefit the payment of which constitutes a relevant benefit crystallisation event mentioned in subsection (1).