SCHEDULES

C4C3SCHEDULE 29Registered pension schemes: authorised lump sums—supplementary

Annotations:
Modifications etc. (not altering text)
C4

Sch. 29 modified (6.4.2006) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207), regs. 1(1), 15 (as amended: (13/8/2009) by S.I. 2009/2047, regs. 1(1), 2-10; (with effect in accordance with reg. 1(3) of the amending S.I.) by S.I. 2012/1795, regs. 1(1), 6; (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by 2014 c. 30, Sch. 1 para. 96(3)-(14) (with Sch. 1 para. 96(16)(b)); and (for the tax year 2024-25 and subsequent tax years) by 2024 c. 3, Sch. 9 paras. 62(6), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4))

C3

Sch. 29 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), art. 23C (as inserted (1.6.2009) by S.I. 2009/1172, arts. 1, 3 (as amended (with effect in accordance with s. 42(9) of the amending Act) by Finance Act 2014 (c. 26), s. 42(5); and as amended by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 72(1) (with Sch. 1 para. 72(2)(b)))

C1C2Part 2Lump sum death benefit rule

Annotations:
Modifications etc. (not altering text)
C1

Sch. 29 Pt. 2 applied (with modifications) (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 14

Money purchase arrangements

Charity lump sum death benefit

18

1

A lump sum death benefit is a charity lump sum death benefit if—

F8a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

there are no dependants of the member,

c

it is paid F3in respect of the member's drawdown pension fund in respect of an arrangementF10, or in respect of the member's flexi-access drawdown fund in respect of an arrangement, at the date of the member’s death, and

d

it is paid to a charity nominated by the member F4...

F21A

A lump sum death benefit is also a charity lump sum death benefit if—

a

the member had reached the age of 75 at the date of the member's death,

b

there are no dependants of the member,

c

it is paid in respect of relevant uncrystallised funds in respect of a money purchase arrangement at the date of the member's death, and

d

it is paid to a charity nominated by the member.

1B

“Relevant uncrystallised funds” has the meaning given by paragraph 15(2).

2

A lump sum death benefit is also a charity lump sum death benefit if—

a

it is paid on the death of a dependant of the member,

F9b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

there are no other dependants of the member,

d

it is paid in respect of F5the dependant's drawdown pension fundF11, or the dependant's flexi-access drawdown fund, at the date of the dependant’s death in respect of an arrangement relating to the member, and

e

it is paid to a charity nominated by the member F1or, if the member made no nomination, by the dependant F6... .

F132A

A lump sum death benefit is also a charity lump sum death benefit if—

a

it is paid on the death of an individual who is—

i

a nominee of the member, or

ii

a successor of the member,

b

there are no dependants of the member,

c

it is paid in respect of the individual's nominee's flexi-access drawdown fund or successor's flexi-access drawdown fund at the date of the individual's death in respect of an arrangement relating to the individual in the capacity of a nominee or successor of the member, and

d

it is paid to a charity nominated by the member or, if the member made no nomination, by the individual.

3

But if the amount of a lump sum falling within sub-paragraph (1)F14, (2) or (2A) exceeds the permitted maximum, the amount of the excess is not a charity lump sum death benefit.

4

The permitted maximum is the aggregate of—

a

the amount of the sums, and

b

the market value of the assets,

F7representing what is the member's or dependant's drawdown pension fundF12, or flexi-access drawdown fund, in respect of the arrangementF15, or the nominee's or successor's flexi-access drawdown fund in respect of the arrangement, immediately before the payment is made.