# Finance Act 2004, Paragraph 2C


(1) This paragraph defines “the applicable amount” in relation to a relevant pension in a case in which the relevant pension is a scheme pension under—
(a) ... a defined benefits arrangement, or
(b) a collective money purchase arrangement.
(2) The applicable amount is (subject to sub-paragraphs (3) and (4))—
A+(B×)-4where—
A is the amount of the lump sum;
B is the relevant valuation factor (see section 276);
C is the amount of the pension which will be payable to the member in the period of 12 months beginning with the day on which the member becomes entitled to the pension (assuming that it remains payable throughout that period at the rate at which it is payable on that day);
...
(3) In determining C for the purposes of sub-paragraph (2) in a case in which the pension is under a public service pension scheme, any abatement of the pension is to be left out of account.
(4) For the purposes of sub-paragraph (2), any part of what would otherwise be A or C which represents rights attributable to a disqualifying pension credit is to be disregarded.

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Source: https://www.legislation.gov.uk/ukpga/2004/12/schedule/29/paragraph/2C (the official version)
Page: https://openlegislation.uk/finance-act-2004/schedule-29/paragraph-2C
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.