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Finance Act 2004
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- s. 236ZA inserted by S.I. 2024/357 art. 2(2)
29(1)If (and for so long as) paragraph 12 (enhanced protection) applies in relation to the individual, paragraph 3 of Schedule 29 (applicable amount) applies with the following modifications.U.K.
(2)Paragraph 3 applies as if for sub-paragraphs (1) to (3) there were substituted—
“(1)Where the member becomes entitled to income withdrawal, the applicable amount is—
where—
VULSR is the value of the individual’s relevant uncrystallised lump sum rights on 5th April 2006, calculated in accordance with paragraphs 25 and 26 of Schedule 36,
VUR is the value of the individual’s uncrystallised pension rights on 5th April 2006, calculated in accordance with paragraphs 8 and 9 of that Schedule,
LS is the lump sum paid, and
AD is the aggregate of the amount of the sums, and the market value of the assets, designated as available for the payment of [F1drawdown pension] on that occasion.
(2)For the purposes of sub-paragraph (1) there is to be deducted from the aggregate of the lump sum and the amount of the sums and the market value of the assets designated as available for the payment of [F1drawdown pension] so much (if any) of that amount as represents rights which are attributable to a disqualifying pension credit.
(3)Where the member becomes entitled to a lifetime annuity, the applicable amount is—
where—
VULSR, VUR and LS have the same meaning as in sub-paragraph (1), and
APP is the annuity purchase price.”
(3)Paragraph 3 applies as if for sub-paragraphs (5) to [F2(7A)] there were substituted—
“(5)There is to be deducted from the aggregate of the amount of the lump sum and the annuity purchase price—
(a)if the annuity is purchased (in whole or in part) by the application of sums or assets representing the whole or part of the [F3member's drawdown pension fund] [F4or flexi-access drawdown fund], the aggregate of the amount of those sums and the market value of those assets, and
(b)in any case, so much (if any) of the aggregate of the lump sum and the annuity purchase price as represents rights which are attributable to a disqualifying pension credit.
(6)Where the member becomes entitled to a scheme pension [F5under a defined benefits arrangement] [F6or a collective money purchase arrangement], the applicable amount is—
but subject to sub-paragraph (8).
(7)In sub-paragraph (6)—
VULSR, VUR and LS have the same meaning as in sub-paragraph (1), and
[F7AC is—
(a)
in a case where the member becomes entitled to the pension before reaching the age of 75, the amount crystallised by reason of the member becoming entitled to the pension, and
(b)
in a case where the member becomes entitled to the pension after reaching that age, the amount that would have been so crystallised but for paragraph 2 of Schedule 32.]
[F8(7A)Where the member becomes entitled to a scheme pension under a money purchase arrangement [F9that is not a collective money purchase arrangement], the applicable amount is (subject to sub-paragraph (8))—
where—
VULSR, VUR and LS have the same meaning as in sub-paragraph (1), and
SPPP is the scheme pension purchase price.”]
[F10(4)Paragraph 3 applies as if in sub-paragraph (8A)(a) for “is one third of” there were substituted “is—
where VULSR, VUR and LS have the same meaning as in sub-paragraph (1), and CAPP is”.
(5)Paragraph 3 applies as if in sub-paragraph (8A)(b) for “is one third of the sums, plus one third of” there were substituted “is—
where VULSR, VUR and LS have the same meaning as in sub-paragraph (1), and EP is the total of the sums, and”.]
Textual Amendments
F1Words in Sch. 36 para. 29(2) substituted (with effect in accordance with Sch. 16 paras. 85, 102 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 82(4)(a)
F2Word in Sch. 36 para. 29(3) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 24(2)
F3Words in Sch. 36 para. 29(3) substituted (with effect in accordance with Sch. 16 paras. 85, 102 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 82(4)(b)(i)
F4Words in Sch. 36 para. 29(3) inserted (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 29
F5Words in Sch. 36 para. 29(3) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 24(3)
F6Words in Sch. 36 para. 29(3) inserted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 23(2)(a), 25(1); S.I. 2022/874, reg. 2
F7Words in Sch. 36 para. 29(3) substituted (with effect in accordance with Sch. 16 paras. 85, 102 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 82(4)(b)(ii)
F8Words in Sch. 36 para. 29(3) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 24(4)
F9Words in Sch. 36 para. 29(3) inserted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 23(2)(b), 25(1); S.I. 2022/874, reg. 2
F10Sch. 36 para. 29(4)(5) inserted (19.3.2014) by Finance Act 2014 (c. 26), Sch. 5 paras. 8, 15
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