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Paragraph 16AD F1F2

(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 × U % )

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.

Annotations

Textual amendments

F1

Sch. 28 paras. 16A-16C inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 28, 64(1)

F2

Sch. 28 paras. 16AA-16AE inserted (with effect in accordance with s. 21(6)(7)(8)(a) of the amending Act) by Finance Act 2016 (c. 24), s. 21(3)(6)

Notes on Schedule 28

Modifications

C1

Sch. 28 modified by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207), regs. 1(1), 14 (as substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by S.I. 2012/1795, regs. 1(1), 5)