Finance Act 2015

Annuity for dependant purchased before 6 April 2006 jointly with annuity for member

19 In Schedule 36 to FA 2004 (transitional provision etc in relation to pre-6 April 2006 pensions) after paragraph 45 insert—

“Taxation of certain annuities for dependants purchased pre-commencement

45A (1) The charge to tax under Part 9 of ITEPA 2003 (taxation of pension income) does not apply to an annuity payable to a person (“the dependant”) if—

(a) the annuity is payable on the death of a member of a pension scheme,

(b) the annuity is paid in respect of the deceased member,

(c) the member had not reached the age of 75 at the date of the member’s death,

(d) the member died on or after 3 December 2014,

(e) no payment of the annuity is made before 6 April 2015,

(f) the annuity has fulfilled the transitional conditions at all times on or after 6 April 2006,

(g) the annuity was purchased together with an annuity payable to the member, and

(h) that annuity payable to the member fulfilled the transitional conditions at all times in the period beginning with 6 April 2006 and ending with the member’s death.

(2) For the purposes of sub-paragraph (1)(g), an annuity is purchased together with another if they are purchased—

(a) in the form of a joint life annuity, or

(b) separately in circumstances in which the day on which the one is purchased is no earlier than seven days before, and no later than seven days after, the day on which the other is purchased.

(3) In sub-paragraph (1) “the transitional conditions” means the conditions specified in the subsection (3A) set out in article 2(3) of the Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572).”