3(1)Part 2 of Schedule 28 (interpretation of the pension death benefit rules) is amended as follows.U.K.
(2)After paragraph 27A insert—
27AA(1)For the purposes of this Part an annuity payable to a nominee is a nominees' annuity if—
(a)either—
(i)it is purchased together with a lifetime annuity payable to the member and the member becomes entitled to that lifetime annuity on or after 6 April 2015, or
(ii)it is purchased after the member's death, the member dies on or after 3 December 2014 and the nominee becomes entitled to the annuity on or after 6 April 2015,
(b)it is payable by an insurance company, and
(c)it is payable until the nominee's death or until the earliest of the nominee's marrying, entering into a civil partnership or dying.
(2)For the purposes of sub-paragraph (1)(a) a nominees' annuity is purchased together with a lifetime annuity if the nominees' annuity is related to the lifetime annuity.
(3)The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision in relation to cases in which a nominees' annuity payable to a person (“the original nominees' annuity”) ceases to be payable and in consequence of that—
(a)sums or assets (or both) are transferred from the insurance company to another insurance company and are applied—
(i)towards the provision of another nominees' annuity (a “new nominees' annuity”) by the other insurance company, or
(ii)otherwise, or
(b)sums or assets are transferred to the relevant registered pension scheme.
(4)The regulations may provide that—
(a)in a case where a new nominees' annuity becomes payable, the new nominees' annuity is to be treated, to such extent as is prescribed by the regulations and for such of the purposes of this Part as are so prescribed, as if it were the original nominees' annuity, and
(b)in any other case, the relevant registered pension scheme is to be treated as making an unauthorised payment in respect of the member of an amount equal to the aggregate of the sums, and the market value of the assets, transferred.
(5)For the purposes of sub-paragraphs (3) and (4) a registered pension scheme is the relevant registered pension scheme if the original nominees' annuity was acquired using sums or assets held for the purposes of the pension scheme.”
(3)After paragraph 27F insert—
27FA(1)For the purposes of this Part an annuity payable to a successor is a successors' annuity if—
(a)the successor becomes entitled to it on or after 6 April 2015,
(b)it is payable by an insurance company,
(c)it is payable until the successor's death or until the earliest of the successor's marrying, entering into a civil partnership or dying,
(d)it is purchased after the death of a dependant, nominee or successor of the member (“the beneficiary”),
(e)it is purchased using undrawn funds, and
(f)the beneficiary dies on or after 3 December 2014.
(2)For the purposes of sub-paragraph (1)(e), sums or assets held for the purposes of an arrangement after the beneficiary's death are undrawn funds if—
(a)immediately before the beneficiary's death, they were held for the purposes of the arrangement and, as the case may be, represented (alone or with other sums or assets) the beneficiary's—
(i)dependant's flexi-access drawdown fund,
(ii)dependant's drawdown pension fund,
(iii)nominee's flexi-access drawdown fund, or
(iv)successor's flexi-access drawdown fund,
in respect of the arrangement, or
(b)they arise, or (directly or indirectly) derive, from undrawn funds under paragraph (a) or from sums or assets which so arise or derive.
(3)The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision in relation to cases in which a successors' annuity payable to a person (“the original successors' annuity”) ceases to be payable and in consequence of that—
(a)sums or assets (or both) are transferred from the insurance company to another insurance company and are applied—
(i)towards the provision of another successors' annuity (a “new successors' annuity”) by the other insurance company, or
(ii)otherwise, or
(b)sums or assets are transferred to the relevant registered pension scheme.
(4)The regulations may provide that—
(a)in a case where a new successors' annuity becomes payable, the new successors' annuity is to be treated, to such extent as is prescribed by the regulations and for such of the purposes of this Part as are so prescribed, as if it were the original successors' annuity, and
(b)in any other case, the relevant registered pension scheme is to be treated as making an unauthorised payment in respect of the member of an amount equal to the aggregate of the sums, and the market value of the assets, transferred.
(5)For the purposes of sub-paragraphs (3) and (4) a registered pension scheme is the relevant registered pension scheme if the original successors' annuity was acquired using sums or assets held for the purposes of the pension scheme.”
(4)Regulations made before 25 December 2015 under the paragraph 27AA or 27FA inserted by this paragraph may, for cases where the transfer concerned takes place on or after 6 April 2015, include provision having effect in relation to times before the regulations are made.