Part 4U.K.Pension schemes etc

Modifications etc. (not altering text)

C7Pt. 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)

C9Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

C10Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)

C11Pt. 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)

C12Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)

C13Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)

C14Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 1

C15Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 9(2)

Chapter 5U.K.Registered pension schemes: tax charges

Lifetime allowance chargeU.K.

216Benefit crystallisation events and amounts crystallisedU.K.

(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 EVENTSAMOUNT 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 [F1drawdown pension] to the individualThe 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 schemesRVF × 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[F2—

(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 schemesThe 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 [F3and any related dependants' annuity] [F4and 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 [F5, or a collective money purchase arrangement,] under any of the relevant pension schemes(RVF × DP) + DSLS
[F65A. 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 [F7drawdown pension] to the individual The aggregate of the amount of the sums and the market value of the assets representing the [F8individual's drawdown pension fund] under the arrangement [F9(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]
[F105B. The individual reaching the age of 75 when there is a money purchase arrangement [F11, 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]
[F125C. 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—

(a)

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

(b)

the individual died on or after 3 December 2014

The aggregate of—

(a)

the amount of such of the sums, and

(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 schemesThe amount of the lump sum [F14paid 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 schemesThe 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 schemeThe aggregate of the amount of any sums transferred and the market value of any assets transferred
[F159. 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).

Textual Amendments

F1Words in s. 216(1) substituted (with effect in accordance with Sch. 16 paras. 85, 104(1) of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 73(2)

F2Words in s. 216(1) inserted (retrospective to 6.4.2006) by Finance Act 2008 (c. 9), Sch. 29 paras. 5, 12(3)

F3Words in s. 216(1) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 31, 64(1)

F4Words in s. 216(1) inserted (26.3.2015) by Finance Act 2015 (c. 11), Sch. 4 para. 4(2)

F6Words in s. 216(1) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 30

F7Words in s. 216(1) substituted (with effect in accordance with Sch. 16 paras. 85, 104(1) of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 73(3)(a)

F8Words in s. 216(1) substituted (with effect in accordance with Sch. 16 paras. 85, 104(1) of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 73(3)(b)

F9Words in s. 216(1) inserted (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 16

F10Words in s. 216(1) inserted (with effect in accordance with Sch. 16 paras. 85, 104(1) of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 43

F12Words in s. 216(1) inserted (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), Sch. 2 para. 21

F13Words in s. 216(1) inserted (26.3.2015) by Finance Act 2015 (c. 11), Sch. 4 para. 4(3)

F14Words in s. 216(1) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 42, 64(1)

F15Words in s. 216 inserted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 29 para. 1(3)

Modifications etc. (not altering text)

C18Ss. 214-226 applied by 2003 c. 1, s. 636A(5) (as inserted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 31 para. 11 (with Sch. 36))

C19S. 216 modified by S.I. 2006/572, art. 29A (as inserted (with effect in accordance with art. 1 of the amending S.I.) by The Taxation of Pension Schemes (Transitional Provisions) (Amendment) Order 2006 (S.I. 2006/1962), arts. 1, 3(3))

C20Ss. 214-226 applied (with modifications) (1.5.2010) by The Financial Assistance Scheme (Tax) Regulations 2010 (S.I. 2010/1187), regs. 1(1), 5-11

C21S. 216 modified (27.7.2010) by Finance (No. 2) Act 2010 (c. 31), Sch. 3 para. 6(1)

Commencement Information

I1Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284