SCHEDULES
C4C3SCHEDULE 29Registered pension schemes: authorised lump sums—supplementary
Sch. 29 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), art. 23C (as inserted (1.6.2009) by S.I. 2009/1172, arts. 1, 3 (as amended (with effect in accordance with s. 42(9) of the amending Act) by Finance Act 2014 (c. 26), s. 42(5); and as amended by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 72(1) (with Sch. 1 para. 72(2)(b)))
C1C2Part 1Lump sum rule
Sch. 29 Pt. 1 modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 25(1)(2)(4)
Sch. 29 Pt. 1 applied (with modifications) (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 11
Winding-up lump sum
10
1
For the purposes of this Part a lump sum is a winding-up lump sum if—
a
the pension scheme is an occupational pension scheme,
b
the pension scheme is being wound-up,
c
F1any person by whom the member is employed at the time when the lump sum is paid, and who has made contributions under the pension scheme in respect of the member within the period of five years ending with the day on which it is paid, meets the conditions in sub-paragraph (3),
d
it is paid when all or part of the member’s lifetime allowance is available, F5and
e
it extinguishes the member’s entitlement to benefits under the pension scheme, F6...
F6f
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
But if a lump sum falling within sub-paragraph (1) exceeds F7£18,000, the excess is not a winding-up lump sum.
F42A
The Treasury may by order substitute for the amount for the time being specified in sub-paragraph (2) such larger amount as is specified in the order.
3
The conditions F2referred to in paragraph (c) of sub-paragraph (1) are that the person mentioned in that paragraph —
F3a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
is not making contributions under any other registered pension scheme in respect of the member, and
c
undertakes to the Inland Revenue not to make such contributions during the period of one year beginning with the day on which the lump sum is paid.
Sch. 29 modified by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207), regs. 1(1), 15 (as substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by S.I. 2012/1795, regs. 1(1), 6; and amended by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 96(3)-(14) (with Sch. 1 para. 96(16)(b))