SCHEDULES

C2SCHEDULE 36Pension schemes etc: transitional provisions and savings

Annotations:
Modifications etc. (not altering text)
C2

Sch. 36 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), art. 23D (as inserted (1.6.2009) by S.I. 2009/1172, arts. 1, 3)

C1Part 3Pre-commencement benefit rights

Annotations:
Modifications etc. (not altering text)

Lump sum rights exceeding £375,000: primary and enhanced protection

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1

This paragraph applies if any of the individual’s uncrystallised lump sum rights on 5th April 2006 are rights under one or more arrangements under a pension scheme or schemes within paragraph 1(1)(a) to (d).

2

The value of the individual’s uncrystallised lump sum rights on 5th April 2006 under the arrangement, or the aggregate of the values of the individual’s uncrystallised lump sum rights on 5th April 2006 under such of the arrangements as relate to a particular employment, is F1...—

a

the value, or the aggregate of the values, calculated under paragraph 25, F2or (if lower)

b

the maximum permitted lump sum.

3

“The maximum permitted lump sum” means

F3a

in the case of an arrangement under a pension scheme which immediately before 6th April 2006 was within section F9611A(1)(a) of ICTA, the maximum lump sum that could be paid to the individual under the pension scheme on 5th April 2006, and

b

in any other case,

the maximum lump sum that could be paid to the individual on 5th April 2006 under the arrangement or arrangements if it or they were made under a pension scheme within paragraph 1(1)(a) without giving the Board of Inland Revenue grounds for withdrawing approval of the pension scheme under section 591B of ICTA.

4

For the purposes of sub-paragraph (3) it is to be assumed—

a

F4in the case of any arrangement, that if the individual was in the employment to which the arrangement or arrangements relates or relate on 5th April F52006 the individual left the employment on that date, and

F6aa

in the case of an arrangement within sub-paragraph (3)(a), that the valuation assumptions apply (see section 277),

b

F7in the case of any other arrangement, that if the individual had not reached the lowest age at which a lump sum may be paid under a pension scheme within paragraph 1(1)(a) to a person in good health without giving the Board of Inland Revenue grounds for withdrawing the approval of the pension F8scheme that fact would not give the Board such grounds.

5

Whether an arrangement relating to an individual relates to an employment is to be determined in accordance with paragraph 9(6).