Taxation of Pensions Act 2014

Further annuities amendments

51 (1) In paragraph 20(1C) (regulations for cases where dependants’ short-term annuity ceases and funds are transferred)—

(a) before paragraph (a) insert—

“(za) in a case where—

(i) a new annuity becomes payable,

(ii) the dependant becomes entitled to it on or after 6 April 2015,

(iii) it would be a dependants’ short-term annuity if any provision made under this paragraph were ignored,

(iv) the terms of the contract for it are such that there will or could be decreases in its amount other than allowed decreases (see sub-paragraph (1E)), and

(v) any other conditions prescribed by the regulations are met,

the new annuity is not a dependants’ short-term annuity for the purposes of this Part,”, and

(b) in paragraph (b) for “any other case” substitute “a case other than one where a new dependants’ short-term annuity becomes payable”.

(2) In paragraph 20 after sub-paragraph (1D) insert—

“(1E) In sub-paragraph (1C)(za)(iv) “allowed decreases” means decreases from time to time allowed by regulations under sub-paragraph (1)(e); and any such regulations are to be treated as having effect for this purpose.”