Amendments of Part 3 of Schedule 36 to FA 2004
87For paragraph 34 (pre-commencement benefit rights: application of Schedule 29 to FA 2004 where paragraph 31 applies) substitute—
“34(1)Paragraph 2 of Schedule 29 (pension commencement lump sums: definition of “permitted maximum”) applies as if the permitted maximum were—
where—
A is the value of the individual’s uncrystallised lump sum rights under the pension scheme on 5th April 2006, calculated in accordance with paragraph 32;
B is the additional lump sum amount.
(2)The additional lump sum amount is—
where—
C is the pension commencement lump sum paid;
D is the applicable amount in relation to the relevant pension (see paragraphs 2A to 2D of Schedule 29);
E is the value of the individual’s uncrystallised rights under the pension scheme on 5th April 2006, calculated in accordance with paragraph 33.
(3)For the purposes of section 637Q of ITEPA 2003 (availability of individual’s lump sum allowance), the “non-taxable amount” of a pension commencement lump sum paid to the individual is to be treated as an amount equal to the applicable amount in relation to the relevant pension.
(4)Any part of what would otherwise be D or E which represents rights attributable to a disqualifying pension credit is to be disregarded.”