Regulation 2 ITEPA 2003

ITEPA 2003^f1 is amended as follows.

In section 574A (“pension”: relevant lump sums), in subsection (3), in Step 3, in paragraph (b), at the end insert “and all of the member’s lump sum and death benefit allowance is available”.

In section 637Q (availability of individual’s lump sum allowance), after subsection (6) insert—

“(6A)

Where more than one relevant benefit crystallisation event occurs in relation to an individual on the same day, it is for the individual to decide the order in which they are to be treated as occurring for the purposes of this section.”

In section 637S (availability of individual’s lump sum and death benefit allowance), after subsection (7) insert—

“(7A)

The individual’s decision under subsection (7), so far as it relates to events that are relevant benefit crystallisation events for the purposes of section 637Q, must be consistent with the individual’s decision under subsection (6A) of that section.”

In section 637T (section 637S: multiple lump sum death benefits paid)—

After section 637T insert—

“Availability of individual’s allowances where lump sums or lump sum death benefits already paid by non-UK schemes

637U

(1)

Subsection (2) applies where—

(a)

a payment within paragraph 1(1)(a) or (b) of Schedule 34 to FA 2004 (non-UK schemes: application of certain charges and protections etc)^f2 is made (or treated by Part 4 of that Act as made) to or in respect of an individual, and

(b)

the payment, or any part of it, is treated by virtue of that Schedule as—

(i)

a pension commencement lump sum, or

(ii)

an uncrystallised funds pension lump sum,

for the purposes of the member payment charges.

(2)

In determining under section 637Q (availability of individual’s lump sum allowance) the availability of the individual’s lump sum allowance on the occurrence of any subsequent relevant benefit crystallisation event, the payment, or part of the payment, mentioned in subsection (1)(b) is to be treated as a relevant lump sum within the meaning of that section.

(3)

Subsection (4) applies where—

(a)

a payment within paragraph 1(1)(a) or (b) of Schedule 34 to FA 2004 (non-UK schemes: application of certain charges and protections etc) is made (or treated by Part 4 of that Act as made) to or in respect of an individual, and

(b)

the payment, or any part of it, is treated by virtue of that Schedule as—

(i)

a pension commencement lump sum,

(ii)

a serious ill-health lump sum,

(iii)

an uncrystallised funds pension lump sum, or

(iv)

any authorised lump sum death benefit, other than a charity lump sum death benefit or a trivial commutation lump sum death benefit,

for the purposes of the member payment charges.

(4)

In determining under section 637S (availability of individual’s lump sum and death benefit allowance) the availability of the individual’s lump sum and death benefit allowance on the occurrence of any subsequent relevant benefit crystallisation event, the payment, or part of the payment, mentioned in subsection (3)(b) is to be treated as—

(a)

in a case within subsection (3)(b)(i) to (iii), a relevant lump sum within the meaning of that section;

(b)

in a case within subsection (3)(b)(iv), a relevant lump sum death benefit within the meaning of that section.”