2

The standard lifetime allowance for the tax years 2016-17 and 2017-18 is £1,000,000.

2A

The standard lifetime allowance for any later tax year (“the subsequent tax year”) is the same as the standard lifetime allowance for the tax year immediately preceding the subsequent tax year, unless subsection (2C) provides for it to be higher.

2B

Subsection (2C) applies if—

a

the consumer prices index for the month of September in any tax year (“the prior tax year”) is higher than it was for the previous September, and

b

the prior tax year is the tax year 2017-18 or a later tax year.

2C

The standard lifetime allowance for the tax year following the prior tax year is the standard lifetime allowance for the prior tax year—

a

increased by the percentage increase in the index, and

b

if the result is not a multiple of £100, rounded up to the nearest amount which is such a multiple.

2D

The Treasury must before the tax year 2018-19, and before each subsequent tax year, make regulations specifying the amount given by subsections (2A) to (2C) as the standard lifetime allowance for the tax year concerned.

5BC

Where the operation of a lifetime allowance enhancement factor is provided for by any of sections 220, 222, 223 and 224 and the time mentioned in the definition of SLA in the section concerned fell within the period consisting of the tax year 2014-15 and the tax year 2015-16, subsection (4) has effect as if the amount to be multiplied by LAEF were £1,250,000 if that is greater than SLA.

5BD

Where more than one lifetime allowance enhancement factor operates, subsection (5BC) does not apply if any of subsections (5A), (5B) and (5BA) applies.

5E

Where benefit crystallisation event 7 occurs on or after 6 April 2016 by reason of the payment of a relevant lump sum death benefit in respect of the death of the individual during the period consisting of the tax year 2014-15 and the tax year 2015-16, the standard lifetime allowance at the time of the benefit crystallisation event is £1,250,000.

5F

Where—

a

benefit crystallisation event 5C occurs by reason of the designation on or after 6 April 2015 of sums or assets held for the purposes of an arrangement relating to the individual, and

b

the individual died before 6 April 2012,

the standard lifetime allowance at the time of the benefit crystallisation event is £1,800,000.

5G

Where—

a

benefit crystallisation event 5C occurs by reason of the designation on or after 6 April 2015 of sums or assets held for the purposes of an arrangement relating to the individual, and

b

the individual died in the period consisting of the tax year 2012-13 and the tax year 2013-14,

the standard lifetime allowance at the time of the benefit crystallisation event is £1,500,000.

5H

Where—

a

benefit crystallisation event 5C occurs by reason of the designation on or after 6 April 2016 of sums or assets held for the purposes of an arrangement relating to the individual, and

b

the individual died in the period consisting of the tax year 2014-15 and the tax year 2015-16,

the standard lifetime allowance at the time of the benefit crystallisation event is £1,250,000.

5I

Where—

a

benefit crystallisation event 5D occurs by reason of a person becoming entitled on or after 6 April 2016 to an annuity in respect of the individual, and

b

the individual died in the period beginning with 3 December 2014 and ending with 5 April 2016,

the standard lifetime allowance at the time of the benefit crystallisation event is £1,250,000.

3

Subsection (2) does not apply to an instrument containing only regulations under section 218(2D).

1A

Sub-paragraph (1) is subject to paragraphs 16AA and 16AB.

16AA

Paragraphs 16B and 16C do not apply if—

a

each benefit crystallisation event that has occurred in relation to the member by reference to arrangements relating to the member under the scheme is benefit crystallisation event 5B (having unused funds under a money purchase arrangement at age 75), or

b

paragraph 12 of Schedule 36 (enhanced protection by reference to pre-6 April 2006 rights) applies in the case of the member immediately before the member's death.

16AB

1

Paragraph 16B does not apply if, at all times in the post-death year (as defined in that paragraph), the payable annual rate is less than the limit.

2

Paragraph 16C does not apply in relation to a period of 12 months within paragraph (a) or (b) of paragraph 16C(1) if, at all times in that period of 12 months, the payable annual rate is less than the limit.

3

“The payable annual rate”, at any time, is arrived at as follows—

a

identify each dependants' scheme pension payable in respect of the member under the scheme to which a dependant of the member is actually entitled at that time, and

b

identify the annual rate at which each pension identified at paragraph (a) is payable at that time, and

c

if only one pension is identified at paragraph (a), the payable annual rate is the annual rate identified at paragraph (b), and

d

if two or more pensions are identified at paragraph (a), the payable annual rate is the total of the annual rates identified at paragraph (b).

4

“The limit”, at any time, is—

a

the general limit at that time (see paragraph 16AC), or,

b

if higher, the personal limit at that time (see paragraph 16AD).

16AC

1

This paragraph applies for the purposes of paragraph 16AB(4).

2

“The general limit” at a time in the tax year 2016-17 is £25,000.

3

“The general limit” at a time in a later tax year (“year T”)—

a

is given by—

$G+(G\times U\text{\%})$

where G is the general limit at times in the tax year (“year P”) that precedes year T, or

b

if the amount given by paragraph (a) is not a multiple of £100, is that amount rounded up to the nearest amount that is such a multiple.

4

See paragraph 16AE for the meaning of U%.

16AD

1

This paragraph applies for the purposes of paragraph 16AB(4).

2

“The personal limit” at a time in the tax year in which the member dies is arrived at as follows—

a

identify each scheme pension under the scheme to which the member is actually or prospectively entitled immediately before the member's death, and

b

as regards each pension identified at paragraph (a)—

i

if it is one to which the member is actually entitled immediately before the member's death, identify the annual rate at which it is payable immediately before the member's death, or

ii

if it is one to which the member is prospectively entitled immediately before the member's death, identify the annual rate at which it would have been payable immediately before the member's death had the member been actually entitled to it immediately before the member's death, and

c

if only one pension is identified at paragraph (a), the personal limit is the annual rate identified at paragraph (b), and

d

if two or more pensions are identified at paragraph (a), the personal limit is the total of the annual rates identified at paragraph (b).

3

“The personal limit” at a time in a tax year (“year S”) later than the tax year in which the member dies—

a

is given by—

$L+(L\times U\text{\%})$

where L is the personal limit at times in the tax year (“year P”) that precedes year S, or

b

if the amount given by paragraph (a) is not a multiple of £100, is that amount rounded up to the nearest amount that is such a multiple.

4

See paragraph 16AE for the meaning of U%.

5

If the scheme is a public service pension scheme, ignore any abatement when identifying at sub-paragraph (2)(b) the annual rate of any scheme pension under the scheme.

16AE

1

In paragraphs 16AC(3) and 16AD(3), U% means the highest of—

a

5%,

b

CPI% (see sub-paragraph (2)), and

c

RPI% (see sub-paragraph (3)).

2

If the consumer prices index for September in year P is higher than the consumer prices index for September in the tax year preceding year P, CPI% is the percentage increase in the index (but is otherwise 0%).

3

If the retail prices index for September in year P is higher than the retail prices index for September in the tax year preceding year P, RPI% is the percentage increase in the index (but is otherwise 0%).

4

In this paragraph “year P” has the same meaning as in paragraph 16AC or (as the case may be) paragraph 16AD.

642ANetherlands Benefit Act for Victims of Persecution 1940-1945

No liability to income tax arises on a pension, annuity, allowance or other payment provided in accordance with the provisions of the scheme established under the law of the Netherlands and known as Wet uitkeringen vervolgingsslachtoffers 1940-1945.