Finance Act 2005

21(1)Paragraph 22 of Schedule 28 (dependant's unsecured pension fund) is amended as follows.U.K.

(2)In sub-paragraph (1) (sums and assets designated as available for the payment of dependants' unsecured pension), for paragraphs (a) and (b) substitute—

“(a)as are dependant-designated funds, and

(b)have not been applied towards the provision of a dependants' scheme pension.”

(3)After that sub-paragraph insert—

“(2)For the purposes of this Part sums or assets held for the purposes of an arrangement are dependant-designated funds if they—

(a)have been designated at any time under the arrangement as available for the payment of dependant's unsecured pension to the dependant, or

(b)arise, or (directly or indirectly) derive, from sums or assets which have been so designated or which so arise or derive.

(3)If any sums or assets representing a dependant's unsecured pension fund in respect of an arrangement under the pension scheme would (apart from this sub-paragraph)—

(a)come to be taken to represent another dependant's unsecured pension fund of his under the pension scheme, or an unsecured pension fund of his under the pension scheme, or

(b)are applied towards the provision of a scheme pension or a lifetime annuity,

they are to be treated as not doing so.”