76(1)In paragraph 7 of Schedule 32 to FA 2004 (benefit crystallisation events 2 and 4: early lifetime annuities) after sub-paragraph (3) insert—
“(4)Sub-paragraph (5) has effect for the purposes of benefit crystallisation event 2 as it applies in relation to the individual’s becoming entitled to the lifetime annuity.
(5)If the total of—
(a)the sums applied to purchase the lifetime annuity and any related dependants’ annuity, and
(b)the market value, at the time they are applied, of the assets applied to make the purchase,
is greater than the amount that would apart from this sub-paragraph be the amount crystallised by the event, that total is the amount crystallised by the event.”
(2)The amendment made by sub-paragraph (1) has effect in relation to a lifetime annuity if, applying the rule in section 165(3)(b) of FA 2004, the annuity is one to which an individual becomes entitled on or after 6 April 2015.