The Taxation of Pension Schemes (Transitional Provisions) Order 2006

1. Introductory Text

2. 1. Citation and commencement

3. 2. Payments made from annuities

4. 3. Commencement provisions for unsecured pension funds

5. 4. Modification of section 165

6. 5. Modification of Schedule 28

7. 5A. Reduction in rate of pension

8. 6. Transitional protection for continued life cover (75+)

9. 7. Modification of Chapter 15A of ITEPA 2003

10. 8. Modification of section 168 and Schedule 29

11. 9. Valuation of “primary protection” – compensation for poorly performing investments

12. 10. Modification of section 212

13. 11. Modification of paragraph 8 of Schedule 36

14. 12. “Primary protection” and non residents

15. 13. Modification of paragraph 20C of Schedule 36

16. 14. Modification of paragraph 20D of Schedule 36

17. 15. Employers or employees with pre-commencement entitlement to corresponding relief

18. 16. Modification of section 245

19. 17. Application of 308A ITEPA 2003

20. 18. “Enhanced protection” and pension commencement lump sums

21. 19. Pre-commencement pension and calculation of the “permitted maximum” pension commencement lump sum

22. 20. Pre-commencement lump sum death benefits

23. 21. Transfers and entitlement to lump sums exceeding 25% of uncrystallised rights

24. 22. Modification of paragraph 31 of Schedule 36

25. 23. Modification of paragraph 34 of Schedule 36

26. 23ZA. Pension commencement lump sums where no pension is paid before death

27. 23ZB. Pension commencement lump sums and multiple pensions

28. 23ZC. Individual becomes entitled to the pensions

29. 23ZD. Individual dies before becoming entitled to any of the pensions

30. 23ZE. Individual dies after becoming entitled to at least one but not all of the pensions

31. 23A. Modification of trivial commutation lump sum rules

32. 23B. (1) For subsection (2) (of section 166 (lump sum rule)...

33. 23C. (1) Schedule 29 (registered pension schemes: authorised lump sums -...

34. 23D. (1) Schedule 36 (pension schemes etc : transitional provisions and...

35. 24. Dependant’s scheme pension limit

36. 25. Stand-alone lump sums: introductory and definition

37. 25A. Conditions to be met by stand-alone lump sums

38. 25B. Circumstances in which stand-alone lump sums are paid

39. 25C. Payment of stand-alone lump sums: tax consequences

40. 25CA. Circumstance A: tax treatment of stand-alone lump sums

41. 25CB. Circumstance B: tax treatment of stand-alone lump sums

42. 25CC. Circumstance C: tax treatment of stand-alone lump sums

43. 25D. Stand-alone lump sums: further provisions

44. 26. Application of paragraph 31 of Schedule 36

45. 27. Contracts approved under section 621(1)(b) of ICTA

46. 28. Pre-existing entitlement to lump sums and deferment

47. 29. Member’s unsecured pension funds

48. 29A. Member’s unsecured pension funds – further provisions

49. 30. Dependant’s unsecured pension funds

50. 31. Individuals over the age of 75 and alternatively secured pension funds

51. 32. Dependant’s alternatively secured pension funds

52. 33. Serious ill-health lump sums, pension protection lump sum death benefits and annuity protection lump sum death benefits

53. 34. Payments to children aged 23 or over

54. 34A. Payments to financially dependent children aged 23 or over

55. 34B. Meaning of “qualifying transferee scheme”

56. 35. Enhanced protection and transfers made in connection with the winding up of a pension scheme

57. 36. Transfer of crystallised rights with enhanced protection

58. 37. Modification of section 637G ITEPA 2003

59. 38. Lump sum payments — general

60. 39. Lump sums — serious ill-health

61. 40. Lump sum death benefits— death of member

62. 41. Lump sum death benefits — death of a dependant

63. 42. Protected pension age and multiple pensions

64. 43. Protected pension age and multiple pensions - member dies before receiving all pensions

65. 44. Normal minimum pension age – modification of section 165 (payment of pension rules)

66. 45. Normal minimum pension age – modification of paragraph 1 of Schedule 29 (lump sum rule)

67. Signature

68. Explanatory Note