# Finance Act 2004, Paragraph 17

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

(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 to 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 a drawdown pension fund lump sum death benefit if—
(a) it is paid on the death of a dependant of the member,
(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 to be paid from the dependant's drawdown pension fund in respect of an arrangement relating to the member, 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 a 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 drawdown pension fund in respect of the arrangement immediately before the payment is made.

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Source: https://www.legislation.gov.uk/ukpga/2004/12/schedule/29/paragraph/17 (the official version)
Page: https://openlegislation.uk/finance-act-2004/schedule-29/paragraph-17
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.