SCHEDULES

SCHEDULE 36Pension schemes etc: transitional provisions and savings

Part 3Pre-commencement benefit rights

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

30

1

Any part of a lump sum falling within paragraph 1 (1) of Schedule 29 which—

a

under paragraph 1(2) of that Schedule is not a pension commencement lump sum (because the lump sum exceeds the permitted maximum), and

b

is an unauthorised payment,

is to be treated as exempt from being scheme chargeable (under section 241(2)) if the condition in sub-paragraph (2) is met.

2

The condition is that it would not have been an unauthorised payment if—

a

paragraphs 27 and 29 (in the case of an individual in relation to whom paragraph 12 applies), or

b

paragraph 28 (in the case of an individual in relation to whom paragraph 12 does not apply),

had not applied.