PART 2Modifications of Part 4 of the Finance Act 2004
CHAPTER 3Benefits
Serious ill-health lump sum: additional lump sum paid for deceased memberI126
1
Paragraphs (2) to (6) apply where—
a
an individual (“P”) has been paid a serious ill-health lump sum in respect of an arrangement,
b
as a result of a relevant rectification provision P, or P’s personal representatives, have acquired rights under the arrangement (“the retrospective entitlement”),
c
P dies without having received benefits in respect of the retrospective entitlement,
d
a lump sum (“the top-up SIHLS”) is paid to P’s personal representatives at a time at which some of P’s lifetime allowance37 is available, and
e
the top-up SIHLS extinguishes the retrospective entitlement.
F12
The payment is to be treated as a serious ill-health lump sum paid to P under a registered pension scheme.
3
The making of the payment is to be treated as a benefit crystallisation event in relation to P for the purposes of the lifetime allowance charge.
4
The amount crystallised for the purposes of that benefit crystallisation event is the amount of the payment.
F25
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6
Regulation 3 of RPS(AP)R 2009 (commutation payments) does not apply in relation to the payment.