SCHEDULES

C1SCHEDULE 28Registered pension schemes: authorised pensions—supplementary

Annotations:
Modifications etc. (not altering text)

C1Part 1Pension rules

Money purchase arrangements

Lifetime annuity

3

1

For the purposes of this Part an annuity payable to the member is a lifetime annuity if—

a

it is payable by an insurance company,

b

the member had an opportunity to select the insurance company,

c

it is payable until the member’s death or until the later of the member’s death and the end of a term certain not exceeding ten years, and

F2d

its amount either cannot decrease or falls to be determined in any manner prescribed by regulations made by the Board of Inland Revenue.

2

An annuity is payable until the end of a term certain even if it may, after the death of the member during the term, end on the annuitant—

a

marrying,

F4aa

entering into a civil partnership,

b

reaching the age of 18, or

c

ceasing to be in full-time education.

F12A

An annuity does not fail to satisfy sub-paragraph (1)(d) by reason of the operation of a pension sharing order or provision.

2B

The Board of Inland Revenue may by regulations make provision in relation to cases in which a lifetime annuity payable by an insurance company (“the original lifetime annuity”) ceases to be payable and in consequence of that—

a

sums or assets (or both) are transferred from the insurance company to another insurance company and are applied towards the provision of either another lifetime annuity (a “new lifetime annuity”) or a scheme pension, short-term annuity, dependants' scheme pension, dependants' annuity or dependants' short-term annuity by the other insurance company, or

b

sums or assets are transferred to the relevant registered pension scheme.

2C

The regulations may provide that—

a

in a case where a new lifetime annuity becomes payable, the new lifetime annuity is to be treated, to such extent as is prescribed by the regulations and for such of the purposes of this Part as are so prescribed, as if it were the original lifetime annuity, and

b

in any other case, the relevant registered pension scheme is to be treated as making an unauthorised payment to the member of an amount equal to the aggregate of the amount of the sums, and the market value of the assets, transferred.

F52CA

The regulations may include provision having effect in relation to times before they are made if that provision does not increase any person's liability to tax.

2D

For the purposes of sub-paragraphs (2B) and (2C) a registered pension scheme is the relevant registered pension scheme if the original lifetime annuity was acquired using sums or assets held for the purposes of the pension scheme.

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