SCHEDULES

SCHEDULE 5Pension flexibility

Dependants' flexi-access drawdown funds

6

1

Part 2 of Schedule 28 to FA 2004 (interpretation of pension death benefit rules) is amended as follows.

2

In paragraph 15 (meaning of “dependant”), after sub-paragraph (2) insert—

2A

A child of the member is a dependant of the member if the child—

a

has reached the age of 23, and

b

is not within sub-paragraph (2)(b).

2B

But this paragraph, so far as it has effect for the purpose of determining the meaning of “dependant”—

a

in paragraphs 16 to 17 and 27A, and

b

in paragraph 18 of Schedule 29,

has effect with the omission of sub-paragraph (2A).

3

In paragraph 22 (meaning of “dependant's drawdown pension fund”)—

a

in sub-paragraph (2)(a) and (aa) omit “to the dependant”, and

b

in sub-paragraph (3), after “representing a” insert “person's”.

4

The amendments made by this paragraph come into force on the day after the day on which this Act is passed.

5

The sub-paragraphs inserted by sub-paragraph (2)—

a

apply for the purpose of determining whether a payment of an annuity is a payment of a dependants' short-term annuity only if the annuity is purchased after the day on which this Act is passed, and

b

apply for the purpose of determining whether a payment to a person is a payment of dependants' income withdrawal if, but only if, the person reaches the age of 23 after the day on which this Act is passed.

6

In sub-paragraph (5) “dependants' short-term annuity” and “dependants' income withdrawal” have the same meaning as in Part 4 of FA 2004.