# Finance Act 2004, Paragraph 15

Extent: E+W+S+N.I.

(1) For the purposes of this Part a lump sum death benefit is an uncrystallised funds lump sum death benefit if—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) it is paid in respect of a money purchase arrangement,
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) it is paid in respect of relevant uncrystallised funds, and
(e) it is not a charity lump sum death benefit.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) “Relevant uncrystallised funds” means such of the sums and assets held for the purposes of the arrangement at the member’s death as—
(a) had not been applied for purchasing a scheme pension, a lifetime annuity, a nominees' annuity, a dependants' scheme pension or a dependants' annuity, and
(b) had not been designated under the arrangement as available for the payment of drawdown pension.
(2A) Where—
(a) the arrangement is a cash balance arrangement,
(b) under the arrangement, a dependant of the member is entitled to be paid after the member's death an amount by way of a lump sum,
(c) the dependant's entitlement to a lump sum of that amount under the arrangement comes into being at a time no later than the member's death,
(d) such of the sums and assets held for the purposes of the arrangement immediately after the member's death as are held for the purpose of meeting the liability to pay the lump sum are insufficient for that purpose (including where that is because none are held for that purpose), and
(e) a person who was an employer in relation to the member pays a contribution to the scheme—
(i) for or towards making good that insufficiency, and
(ii) of no more than is needed for making good the insufficiency,
the sums and assets held for the purposes of the arrangement that represent the contribution are to be treated as “relevant uncrystallised funds” for the purposes of this paragraph.
(3) But if an amount falling within sub-paragraph (1) exceeds the permitted maximum, the excess is not an uncrystallised funds lump sum death benefit.
(4) The permitted maximum is the aggregate of—
(a) the amount of the sums, and
(b) the market value of the assets,
which constitute the relevant uncrystallised funds immediately before the payment is made.

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Source: https://www.legislation.gov.uk/ukpga/2004/12/schedule/29/paragraph/15 (the official version)
Page: https://openlegislation.uk/finance-act-2004/schedule-29/paragraph-15
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.