C1C3C4C5C7C10C11C12C13C16C17C18C19C36C37Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)
C11

Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)

C13

Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

C16

Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)

C17

Pt. 4 applied (with modifications) (with application in accordance with Sch. 22 para. 1 of the amending Act) by Finance Act 2013 (c. 29), Sch. 22 para. 1(2)

C18

Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)

C19

Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)

C36

Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 1

C37

Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 9(2)

C13C16Chapter 5Registered pension schemes: tax charges

Lifetime allowance charge

I1C6C2C8C9C14C15C22C20C23C28C34C26C33C30C35C25C29C21C27C31C24C32216Benefit crystallisation events and amounts crystallised

1

This table sets out—

a

the events which are benefit crystallisation events in relation to the individual, and

b

the amount which is crystallised by each of those events.

BENEFIT CRYSTALLISATION EVENTS

AMOUNT CRYSTALLISED

1. The designation of sums or assets held for the purposes of a money purchase arrangement under any of the relevant pension schemes as available for the payment of F7drawdown pension to the individual

The aggregate of the amount of the sums and the market value of the assets designated

2. The individual becoming entitled to a scheme pension under any of the relevant pension schemes

RVF × P

3. The individual, having become so entitled, becoming entitled to payment of the scheme pension, otherwise than in excepted circumstances, at an increased annual rate which

F4

a

exceeds the threshold annual rate, and

b

exceeds by more than the permitted margin the rate at which it was payable on the day on which the individual became entitled to it

RVF × XP

4. The individual becoming entitled to a lifetime annuity purchased under a money purchase arrangement under any of the relevant pension schemes

The aggregate of the amount of such of the sums, and the market value of such of the assets, representing the individual’s rights under the arrangement as are applied to purchase the lifetime annuity F2and any related dependants' annuityF12and any related nominees' annuity

5. The individual reaching the age of 75 when prospectively entitled to a scheme pension or a lump sum (or both) under a defined benefits arrangement F14, or a collective money purchase arrangement, under any of the relevant pension schemes

(RVF × DP) + DSLS

F15A. The individual reaching the age of 75 having designated sums or assets held for the purposes of a money purchase arrangement under any of the relevant pension schemes as available for the payment of F8drawdown pension to the individual

The aggregate of the amount of the sums and the market value of the assets representing the F9individual's drawdown pension fund under the arrangement F10(if any), plus the aggregate of the amount of the sums and the market value of the assets representing the individual's flexi-access drawdown fund under the arrangement (if any), less the aggregate of amounts crystallised by benefit crystallisation event 1 in relation to the arrangement and the individual

F65B. The individual reaching the age of 75 when there is a money purchase arrangement F15, other than a collective money purchase arrangement, relating to the individual under any of the relevant pension schemes

The amount of any remaining unused funds

F115C. The designation, on or after 6 April 2015 but before the end of the relevant two-year period, of relevant unused uncrystallised funds as available for the payment, to a dependant or nominee of the individual, of (as the case may be) dependants' flexi-access drawdown pension or nominees' flexi-access drawdown pension

The aggregate of the amount of the sums and the market value of the assets designated

F135D. A person becoming entitled, on or after 6 April 2015 but before the end of the relevant two-year period, to a dependants' annuity or nominees' annuity in respect of the individual if—

  1. a

    the annuity is purchased using (whether or not exclusively) relevant unused uncrystallised funds, and

  2. b

    the individual died on or after 3 December 2014

The aggregate of—

  1. a

    the amount of such of the sums, and

  2. b

    the market value of such of the assets,

applied to purchase the annuity as are relevant unused uncrystallised funds

6. The individual becoming entitled to a relevant lump sum under any of the relevant pension schemes

The amount of the lump sum F3paid to the individual

7. A person being paid a relevant lump sum death benefit in respect of the individual under any of the relevant pension schemes

The amount of the lump sum death benefit

8. The transfer of sums or assets held for the purposes of, or representing accrued rights under, any of the relevant pension schemes so as to become held for the purposes of or to represent rights under a qualifying recognised overseas pension scheme in connection with the individual’s membership of that pension scheme

The aggregate of the amount of any sums transferred and the market value of any assets transferred

F59. If regulations under section 164(1)(f) so provide, the happening of an event prescribed in the regulations in relation to a payment prescribed in the regulations

An amount determined in accordance with the regulations

2

Schedule 32 gives the meaning of expressions used in the table in subsection (1).