11(1)This paragraph applies where—U.K.
(a)paragraph 7 [F1applies] in relation to an individual, and
(b)on or after 6th April 2006, the rights of the individual under a relevant pension arrangement (see paragraph 8(2)) relating to the individual are reduced by becoming subject to a pension debit.
(2)The primary protection factor (see [F2paragraph 7(5)]) is to be recalculated.
(3)The recalculation involves reducing RR (see [F3paragraph 7(5)]) by the amount by which the individual’s rights are reduced and arriving at a revised primary protection factor.
(4)The revised primary protection factor operates in relation to any [F4relevant benefit crystallisation event] occurring in relation to the individual after the time when the individual’s rights are reduced by becoming subject to the pension debit.
[F5(5)In this paragraph “relevant benefit crystallisation event” has the same meaning as in section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance).]
Textual Amendments
F1Word in Sch. 36 para. 11(1)(a) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 69(2), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)
F2Words in Sch. 36 para. 11(2) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 69(3), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)
F3Words in Sch. 36 para. 11(3) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 69(3), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)
F4Words in Sch. 36 para. 11(4) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 69(4), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)
F5Sch. 36 para. 11(5) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 69(5), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)