Paragraph 6

A lump sum is a refund of excess contributions lump sum if—

But if a lump sum falling within sub-paragraph (1) exceeds the member’s available excess contributions allowance for the tax year in respect of which it is paid, the excess is not a refund of excess contributions lump sum.

The excess contributions condition is met in respect of a member and a tax year if the amount of relievable pension contributions (see section 188(2) and (3)) paid in respect of the member in the tax year exceeds the maximum amount of relief to which the member is entitled for the tax year under section 190 (annual limit for relief).

If no refund of excess contributions lump sum has been paid to the member in respect of a tax year (by any registered pension scheme), the available excess contributions allowance for that tax year is F1(subject to sub-paragraph (7))—

If one or more refund of excess contributions lump sums have been paid to the member in respect of a tax year, the available excess contributions allowance for that tax year is F2(subject to sub-paragraph (7))—

or, if the amount resulting from that calculation is negative, is nil.

In this paragraph—

• RPC is the amount of the relievable pension contributions paid in respect of the member in the tax year,

• MAR is the maximum amount of relief to which the member is entitled for the tax year under section 190, and

• ALS is the aggregate of the refund of excess contributions lump sums previously paid to the member in respect of the tax year.

If any relief given in accordance with section 192(1) in relation to any contribution included in RPC is in excess of the maximum amount of relief to which the member is entitled under section 190, RPC is to be taken to be reduced by the amount of that excess.