Finance Act 2011 (c. 11)

SCHEDULES

SCHEDULE 16 U.K. Benefits under pension schemes

Part 1 U.K. Changes to benefits available under pension schemes etc

Meaning of “drawdown pension” U.K.

2 U.K. Part 1 of Schedule 28 to FA 2004 (pension rules) is amended as follows.

3 (1) In paragraph 4 (meaning of “unsecured pension”), for “ “Unsecured pension”” substitute “ “Drawdown pension” ”. U.K.

(2) The heading before paragraph 4 becomes “ Drawdown pension ”.

4 U.K. In paragraph 6 (short-term annuity), in sub-paragraph (1)—

(a) in paragraph (a), for “member's unsecured pension fund” substitute “ member's drawdown pension fund ”;

(b) in paragraph (d), omit “and ends before the member reaches the age of 75”.

5 U.K. For paragraph 7 (meaning of “income withdrawal”) substitute—

“7 Income withdrawal” means an amount (other than an annuity) which the member is entitled to be paid from the member's drawdown pension fund in respect of an arrangement.”