Reduction of benefits where lifetime allowance charge payable
118.—(1) This regulation applies if—
(a)an event that is a benefit crystallisation event listed in the table in section 216(1) of the FA 2004 (“the table”) occurs in relation to a member;
(b)the member and scheme manager are jointly and severally liable in relation to that event.
(2) If this regulation applies—
(a)the scheme manager must pay the lifetime allowance charge payable on the event;
(b)if the event is benefit crystallisation event 8 in the table (transfer to qualifying recognised overseas pension scheme), the amount or value of the sums or assets transferred must be reduced; and
(c)in the case of any other event in that table, the amount or value of the benefits payable to or in respect of the member must be reduced.
(3) The amount or value of the reduction must be such that in the opinion of the scheme manager, having consulted the scheme actuary, fully reflects the amount of the lifetime allowance charge so paid and is consistent with normal actuarial practice.