Paragraph 18

United Kingdom

(1)

A lump sum death benefit is a charity lump sum death benefit if—

F1(a)

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

(b)

there are no dependants of the member,

(c)

it is paid F2in respect of the member's drawdown pension fund in respect of an arrangementF3, or in respect of the member's flexi-access drawdown fund in respect of an arrangement, at the date of the member’s death, and

(d)

it is paid to a charity nominated by the member F4...

F5(1A)

A lump sum death benefit is also a charity lump sum death benefit if—

F6(a)

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

(b)

there are no dependants of the member,

(c)

it is paid in respect of relevant uncrystallised funds in respect of a money purchase arrangement at the date of the member's death, and

(d)

it is paid to a charity nominated by the member.

(1B)

“Relevant uncrystallised funds” has the meaning given by paragraph 15(2).

(2)

A lump sum death benefit is also a charity lump sum death benefit if—

(a)

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

F7(b)

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

(c)

there are no other dependants of the member,

(d)

it is paid in respect of F8the dependant's drawdown pension fundF9, or the dependant's flexi-access drawdown fund, at the date of the dependant’s death in respect of an arrangement relating to the member, and

(e)

it is paid to a charity nominated by the member F10or, if the member made no nomination, by the dependant F11... .

F12(2A)

A lump sum death benefit is also a charity lump sum death benefit if—

(a)

it is paid on the death of an individual who is—

(i)

a nominee of the member, or

(ii)

a successor of the member,

(b)

there are no dependants of the member,

(c)

it is paid in respect of the individual's nominee's flexi-access drawdown fund or successor's flexi-access drawdown fund at the date of the individual's death in respect of an arrangement relating to the individual in the capacity of a nominee or successor of the member, and

(d)

it is paid to a charity nominated by the member or, if the member made no nomination, by the individual.

(3)

But if the amount of a lump sum falling within sub-paragraph (1)F13, (2) or (2A) exceeds the permitted maximum, the amount of the excess is not a charity 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,

F14representing what is the member's or dependant's drawdown pension fundF15, or flexi-access drawdown fund, in respect of the arrangementF16, or the nominee's or successor's flexi-access drawdown fund in respect of the arrangement, immediately before the payment is made.

Annotations

Textual amendments

F1: Sch. 29 para. 18(1)(a) 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. 38(2)(a)
F2: Words in Sch. 29 para. 18(1)(c) substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 38(2)(b)
F3: Words in Sch. 29 para. 18(1)(c) inserted (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 25(a)
F4: Words in Sch. 29 para. 18(1)(d) 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. 38(2)(c)
F5: Sch. 29 para. 18(1A)(1B) inserted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 38(3)
F6: Sch. 29 para. 18(1A)(a) omitted (with effect in accordance with Sch. 5 para. 5(2) of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 5 para. 5(1)
F7: Sch. 29 para. 18(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. 38(4)(a)
F8: Words in Sch. 29 para. 18(2)(d) substituted (with effect in accordance with Sch. 16 paras. 85, 103 of the amending Act) by Finance Act 2011 (c. 11), Sch. 16 para. 38(4)(b)
F9: Words in Sch. 29 para. 18(2)(d) inserted (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 25(b)
F10: Words in Sch. 29 para. 18(2)(e) substituted (19.7.2007 (with effect in accordance with Sch. 19 para. 29(6) of the amending Act) by Finance Act 2007 (c. 11), Sch. 19 para. 16(5)
F11: Words in Sch. 29 para. 18(2)(e) 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. 38(4)(c)
F12: Sch. 29 para. 18(2A) inserted (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), Sch. 2 para. 15(2)
F13: Words in Sch. 29 para. 18(3) substituted (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), Sch. 2 para. 15(3)
F14: Words in Sch. 29 para. 18(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. 38(5)
F15: Words in Sch. 29 para. 18(4) inserted (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), Sch. 1 para. 25(c)
F16: Words in Sch. 29 para. 18(4) inserted (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), Sch. 2 para. 15(4)

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)