SCHEDULES
SCHEDULE 29Registered pension schemes: authorised lump sums—supplementary
Part 1Lump sum rule
Pension commencement lump sum
2
1
If sub-paragraph (2) applies, the permitted maximum is nil.
2
This sub-paragraph applies if all the member’s rights under the arrangement under which the member becomes entitled to the relevant pension are attributable to a disqualifying pension credit.
3
A pension credit is disqualifying if, when the member becomes entitled to it, the person subject to the corresponding pension debit has an actual (rather than a prospective) right to payment of a pension under the relevant arrangement.
4
The relevant arrangement is the arrangement to which the pension sharing order or provision, by virtue of which the member becomes entitled to the pension credit, relates.
5
If sub-paragraph (2) does not apply, the permitted maximum is the lower of—
a
the available portion of the member’s lump sum allowance, and
b
the applicable amount, calculated in accordance with paragraph 3.
F15A
But if the member dies before becoming entitled to the relevant pension in connection with which it was anticipated that the member would become entitled to the lump sum, the permitted maximum is the available portion of the member's lump sum allowance.
6
The available portion of the member’s lump sum allowance is—
where—
CSLA is the current standard lifetime allowance, and
AAC is the aggregate of the amounts crystallised by each benefit crystallisation event which has occurred in relation to the member before the member becomes entitled to the lump sum, as adjusted under sub-paragraph (7) (and if no such benefit crystallisation event has occurred, is nil).
7
The adjustment of an amount crystallised by a previous benefit crystallisation event referred to in the definition of AAC is the multiplication of the amount by—
where—
CSLA is the current standard lifetime allowance, and
PSLA is the standard lifetime allowance at the time of the previous benefit crystallisation event.
8
If the amount given by sub-paragraph (6) is negative, no portion of the member’s lump sum allowance is available.