OpenLegislation

Paragraph 24 C1C2

United Kingdom

F1(A1)

This paragraph applies in relation to drawdown pension years beginning on or before the dependant's 75th birthday.

(1)

Subject as follows, the period of three drawdown pension years beginning with the first drawdown pension year, and each succeeding period of three drawdown pension years, is a “reference period”.

(1ZA)

But the reference period in which the dependant reaches the age of 75 ends with the drawdown pension year in which the dependant reaches that age.

F2(1A)

Sub-paragraph (1B) applies if, at any time during a reference period (“the current reference period”), the dependant notifies the scheme administrator that the dependant wishes a new reference period to begin on the next day that is an anniversary of the reference date in relation to the current reference period.

(1B)

The scheme administrator may determine—

(a)

that the current reference period is to end immediately before that day (so that sub-paragraph (1) no longer applies), and

(b)

that (subject to F3sub-paragraph (1ZA) and any further operation of this sub-paragraph) the period of F4three drawdown pension years beginning with that day, and each succeeding period of three drawdown pension years, is to be a reference period.

(1C)

The first day of each reference period is, in relation to that period, “the reference date”.

(2)

For the first F5drawdown pension year falling within a reference period, the basis amount is the annual amount of the relevant annuity which could have been purchased by the application of the sums and assets representing the F6dependant's drawdown pension fund on the nominated date (but subject to sub-paragraph (5)).

(3)

“The nominated date”—

(a)

in relation to the first reference period, is the reference date, and

(b)

in relation to any subsequent reference period, is such day, within the period of 60 days ending with the reference date, as is nominated by the scheme administrator (or if no day is nominated by the scheme administrator, is the reference date).

C3(4)

For each other F7drawdown pension year falling within a reference period, the basis amount is the annual amount of the relevant annuity which could have been purchased by the application of the sums and assets representing the F8dependant's drawdown pension fund—

(a)

if there has been no recent annuity purchaseF9, recent additional fund designation or recent pension sharing event, on the nominated date, and

(b)

otherwise, immediately after the last annuity purchaseF10, additional fund designation or pension sharing event,

(but subject to sub-paragraph (5)).

(5)

On the occasion of each additional fund designation during F11a drawdown pension year, the basis amount for F12that drawdown pension year is to be recalculated in accordance with sub-paragraph (6).

(6)

The basis amount for the F13drawdown pension year is the annual amount of the relevant annuity which could have been purchased by the application of the sums and assets representing the F14dependant's drawdown pension fund immediately after the additional fund designation.

F15(6A)

But sub-paragraph (5) does not apply where the operation of that sub-paragraph in relation to an additional fund designation during a drawdown pension year would reduce the basis amount for that drawdown pension year.

C4(7)

“Annuity purchase” means the purchase of a dependants' scheme pension or dependants' annuity by the application of sums or assets representing the whole or part of the F16dependant's drawdown pension fund.

(8)

“Additional fund designation” means the designation under the arrangement of further F17sums or assets held for the purposes of the arrangement as available for the payment of F18dependants' drawdown pension to the dependant.

F19(8A)

“Pension sharing event” means the coming into operation of a pension sharing order or provision relating to the sums and assets representing the F20dependant's drawdown pension fund.

(9)

An annuity purchaseF21, additional fund designation or pension sharing event is “recent” if it took place during the period—

(a)

beginning with the reference date, and

(b)

ending with the last day of the immediately preceding F22drawdown pension year.

(10)

Paragraph 14 defines “relevant annuity”.

F23(11)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1

Sch. 28 para. 24(1)(1ZA)(A1) substituted for Sch. 28 para. 24(1) (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(2)

F2

Sch. 28 para. 24(1)-(1C) substituted (19.7.2007) for Sch. 28 para. 24(1) (with effect in accordance with Sch. 20 para. 24(5) of the amending Act) by Finance Act 2007 (c. 11), Sch. 20 para. 8(3)

F3

Words in Sch. 28 para. 24(1B)(b) inserted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(3)(a)

F4

Words in Sch. 28 para. 24(1B)(b) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(3)(b)

F5

Words in Sch. 28 para. 24(2) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(4)(a)

F6

Words in Sch. 28 para. 24(2) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(4)(b)

F7

Words in Sch. 28 para. 24(4) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(4)(a)

F8

Words in Sch. 28 para. 24(4) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(4)(b)

F9

Words in Sch. 28 para. 24(4)(a) substituted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 22(2)(a), 64(1)

F10

Words in Sch. 28 para. 24(4)(b) substituted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 22(2)(b), 64(1)

F11

Words in Sch. 28 para. 24(5) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(5)(a)

F12

Words in Sch. 28 para. 24(5) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(5)(b)

F13

Words in Sch. 28 para. 24(6) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(6)(a)

F14

Words in Sch. 28 para. 24(6) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(6)(b)

F15

Sch. 28 para. 24(6A) inserted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(7)

F16

Words in Sch. 28 para. 24(7) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(8)

F17

Words in Sch. 28 para. 24(8) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(9)(a)

F18

Words in Sch. 28 para. 24(8) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(9)(b)

F19

Sch. 28 para. 24(8A) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 22(3), 64(1)

F20

Words in Sch. 28 para. 24(8A) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(10)

F21

Words in Sch. 28 para. 24(9) substituted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 22(4), 64(1)

F22

Words in Sch. 28 para. 24(9)(b) substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 18(11)

F23

Sch. 28 para. 24(11) omitted (6.4.2015) by virtue of Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 32(1)(e)(iv)(4)

Modifications

C1

Sch. 28 para. 24 modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 3, 5(1)(3)

C2

Sch. 28 para. 24 modified (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 98(2)(b)

C3

Sch. 28 para. 24(4) applied (with modifications) (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 98(7)

C4

Sch. 28 para. 24(7)-(8A) modified (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 98(8)

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)

Notes on Drawdown pension year and basis amount for drawdown pension year

Textual amendments

F1

Sch. 28 para. 23 cross-heading substituted (with effect in accordance with Sch. 16 para. 85 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 17(4)