Paragraph 17 C1

United Kingdom

F1(1)

For the purposes of this Part a lump sum death benefit is a drawdown pension fund lump sum death benefit if—

(a)

it is paid in respect of income withdrawal to which the member was entitled F2to be paid from the member's drawdown pension fund in respect of an arrangement at the date of the member's death, and

(b)

it is not a charity lump sum death benefit.

(2)

A lump sum death benefit is also F3a drawdown pension fund lump sum death benefit if—

(a)

it is paid on the death of a dependant of the member,

F4(b)

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

(c)

it is paid in respect of dependants' income withdrawal to which the dependant was entitled at the date of the dependant’s death F5to be paid from the dependant's drawdown pension fund in respect of an arrangement relating to the memberF6, and

(d)

it is not a charity lump sum death benefit.

(3)

But if the amount of a lump sum falling within sub-paragraph (1) or (2) exceeds the permitted maximum, the excess is not F7a drawdown pension fund 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,

representing the member’s or dependant’s F8drawdown pension fund in respect of the arrangement immediately before the payment is made.

Annotations

Textual amendments

F1: Sch. 29 para. 17(1) substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 37(2)
F2: Words in Sch. 29 para. 17(1)(a) substituted (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 23(a)
F3: Words in Sch. 29 para. 17(2) substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 37(3)(a)
F4: Sch. 29 para. 17(2)(b) omitted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 16 para. 37(3)(b)
F5: Words in Sch. 29 para. 17(2)(c) inserted (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 23(b)
F6: Sch. 29 para. 17(2)(d) and word inserted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 37(3)(c)
F7: Words in Sch. 29 para. 17(3) substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 37(4)
F8: Words in Sch. 29 para. 17(4) substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 37(5)

Modifications

C1: Sch. 29 para. 17 modified (27.7.2010) by Finance (No. 2) Act 2010 (c. 31), Sch. 3 para. 2(1)(2)(e) (with Sch. 2 para. 2(1)

Notes on Schedule 29

Modifications

C1: Sch. 29 modified (6.4.2006) by The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207), regs. 1(1), 15 (as amended: (13/8/2009) by S.I. 2009/2047, regs. 1(1), 2-10; (with effect in accordance with reg. 1(3) of the amending S.I.) by S.I. 2012/1795, regs. 1(1), 6; (with effect in accordance with Sch. 1 para. 96(16)(a) of the amending Act) by 2014 c. 30, Sch. 1 para. 96(3)-(14) (with Sch. 1 para. 96(16)(b)); and (for the tax year 2024-25 and subsequent tax years) by 2024 c. 3, Sch. 9 paras. 62(6), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4); and (18.11.2024 for the tax year 2024-25 and subsequent tax years) by S.I. 2024/1012, regs. 1(2)(3), 22(2))
C2: Sch. 29 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), art. 23C (as inserted (1.6.2009) by S.I. 2009/1172, arts. 1, 3 (as amended (with effect in accordance with s. 42(9) of the amending Act) by Finance Act 2014 (c. 26), s. 42(5); and by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 72(1) (with Sch. 1 para. 72(2)(b)); and (18.11.2024 for the tax year 2024-25 and subsequent tax years) by S.I. 2024/1012, regs. 1(2)(3), 25(14))

Notes on Part 2

Modifications

C1: Sch. 29 Pt. 2 applied (with modifications) (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 14
C2: Sch. 29 Pt. 2 modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 6, 8(1)(3)

Notes on Drawdown pension fund lump sum death benefit

Textual amendments

F1: Sch. 29 para. 17 cross-heading substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 37(6)