SCHEDULES
C1C3SCHEDULE 36Pension schemes etc: transitional provisions and savings
Sch. 36 applied (1.6.2018) by The Local Government Pension Scheme (Scotland) Regulations 2018 (S.S.I. 2018/141), regs. 1(1), 48(2)
C2Part 2Pre-commencement rights: F12enhancement of allowances etc
Words in Sch. 36 Pt. 2 heading substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 66, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)
Sch. 36 Pt. 2 applied (with modifications) (1.5.2010) by The Financial Assistance Scheme (Tax) Regulations 2010 (S.I. 2010/1187), regs. 1(1), 5-11
“Primary protection”
9
1
This paragraph applies if any of the individual’s uncrystallised rights on 5th April 2006 are rights under one or more arrangements under a pension scheme or schemes within paragraph 1(1)(a) to (d).
2
The value of the individual’s uncrystallised rights on 5th April 2006 under the arrangement, or the aggregate of the values of the individual’s uncrystallised rights on 5th April 2006 under such of the arrangements as relate to a particular employment, is F3...—
a
the value, or the aggregate of the values, calculated under paragraph 8, F4or (if lower)
b
the amount arrived at in accordance with sub-paragraph (3).
3
The amount arrived at in accordance with this sub-paragraph is—
where MPP is the maximum permitted pension F2as increased, in a case where sub-paragraph (5A) applies, in accordance with sub-paragraph (5B).
4
“The maximum permitted pension” means
F5a
in the case of an arrangement under a pension scheme which immediately before 6th April 2006 was within section F11611A(1)(a) of ICTA, the maximum annual pension that could be paid to the individual under the pension scheme on 5th April 2006, and
b
in any other case, the maximum annual pension that could be paid to the individual on 5th April 2006 under the arrangement or arrangements if it or they were made under a pension scheme within paragraph 1(1)(a) without giving the Board of Inland Revenue grounds for withdrawing approval of the pension scheme under section 591B of ICTA.
5
For the purposes of sub-paragraph (4) it is to be assumed—
a
F8aa
in the case of an arrangement within sub-paragraph (4)(a), that the valuation assumptions apply (see section 277),
b
F9in the case of any other arrangement, that if the individual had not reached the lowest age at which a pension may be paid under a pension scheme within paragraph 1(1)(a) to a person in good health without giving the Board of Inland Revenue grounds for withdrawing the approval of the pension F10scheme that fact would not give the Board such grounds.
F15A
This sub-paragraph applies where, in the case of an arrangement under a pension scheme which immediately before 6th April 2006 was within section 611A(1)(a) of ICTA—
a
a lump sum could be paid to the individual on 5th April 2006 under the pension scheme otherwise than by commutation of pension, and
b
that lump sum could not be exchanged (in whole or in part) for an increased pension.
5B
Where sub-paragraph (5A) applies, the amount arrived at under sub-paragraph (3) is the aggregate of what it otherwise would be and so much of the amount of the lump sum as could not be so exchanged.
6
For the purposes of this paragraph an arrangement relating to an individual relates to an employment if—
a
the earnings by reference to which benefits under the arrangement are calculated are earnings from the employment, or
b
the person who is the employer in relation to the employment pays contributions under the arrangement in respect of the individual.
Sch. 36 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), art. 23D (as inserted (1.6.2009) by S.I. 2009/1172, arts. 1, 3)