41(1)In Part 4 of FA 2004, section 206 (special lump sum death benefits charge) is amended as follows.U.K.
(2)In subsection (1), for paragraph (c) substitute—
“(c)a drawdown pension fund lump sum death benefit,”.
(3)After that subsection insert—
“(1A)The special lump sum death benefits charge also arises where—
(a)a defined benefits lump sum death benefit, or
(b)an uncrystallised funds lump sum death benefit,
is paid by a registered pension scheme in respect of a member who had reached the age of 75 at the date of the member's death.”
(4)In subsection (4), for “35%” substitute “ 55% ”.
(5)For subsection (7) substitute—
“(7)None of the following is to be treated as income for any purpose of the Tax Acts—
(a)any lump sum death benefit mentioned in subsection (1);
(b)a defined benefits lump sum death benefit or uncrystallised funds lump sum death benefit paid in respect of a member who had reached the age of 75 at the date of the member's death.”