Annuity protection lump sum death benefitU.K.
16(1)For the purposes of this Part a lump sum death benefit is an annuity protection lump sum death benefit if—U.K.
(a)the member had not reached the age of 75 at the date of the member’s death,
(b)it is paid in respect of a money purchase arrangement, and
(c)it is paid in respect of a scheme pension or lifetime annuity to which the member was entitled at the date of the member’s death.
(2)But if the amount of a lump sum falling within sub-paragraph (1) exceeds the annuity protection limit, the excess is not an annuity protection lump sum death benefit.
(3)The annuity protection limit is—
where—
AC is the amount crystallised by reason of the member becoming entitled to the pension or annuity (see section 216) [F1, but disregarding paragraphs 3 and 4 of Schedule 32],
AP is the amount of the pension paid in respect of the period between the member becoming entitled to the pension or annuity and the member’s death, and
TPLS is the total amount of annuity protection lump sum death benefit previously paid in respect of the pension or annuity under this paragraph.
Textual Amendments
F1Words in Sch. 29 para. 16(3) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 29
Modifications etc. (not altering text)
C5Sch. 29 para. 16(3) modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 33(1)(2)(5)