Schedules

Schedule 9Pensions

Part 4Transitional protections

93Amendments of Schedule 4 to FA 2016

1

Schedule 4 to FA 2016 (pensions: lifetime allowance: transitional provision) is amended as follows is amended as follows.

2

In the heading, for “lifetime allowance” substitute “lump sum allowance and lump sum and death benefit allowance”.

3

In Part 1 (“fixed protection 2016”)—

a

in paragraph 1 (the protection), for sub-paragraph (2) substitute—

2

Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes) has effect in relation to the individual as if—

a

the amount specified in section 637P of that Act (individual’s lump sum allowance) were £312,500, and

b

the amount specified in section 637R of that Act (individual’s lump sum and death benefit allowance) were £1,250,000.

b

in paragraph 2 (the initial conditions), in paragraph (b), for “make provision for a lifetime allowance enhancement factor” substitute “apply on 6 April 2016”.

4

In Part 2 (“individual protection 2016”), in paragraph 9 (the protection)—

a

in sub-paragraph (1)(c), for “make provision for a lifetime allowance enhancement factor” substitute “apply on 6 April 2016”;

b

for sub-paragraph (2) substitute—

2

Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes) has effect in relation to the individual as if—

a

the amount specified in section 637P of that Act (individual’s lump sum allowance) were the lower of—

i

25% of the individual’s relevant amount;

ii

£312,500, and

b

the amount specified in section 637R of that Act (individual’s lump sum and death benefit allowance) were the lower of—

i

the individual’s relevant amount;

ii

£1,250,000.

5

In Part 3 (reference numbers etc), in paragraph 14 (issuing of reference numbers for fixed or individual protection 2016), in sub-paragraph (3)(b), at the end insert “but before 6 April 2025”.