Paragraph 10 I1C1C2
United Kingdom
For the purposes of benefit crystallisation event 3 “excepted circumstances” exist if condition A or B is met.
F3Condition A is that—
the entitlement to payment of a scheme pension at an increased annual rate is under an arrangement that is not a collective money purchase arrangement,
F5... at the time when the annual rate of the individual’s pension is increased there are at least 50 pensioner members of the pension scheme, and
A class may consist of all the pensioner members of the pension scheme.
Sub-paragraph (4) applies where—
the annual rate of the individual's pension is increased in excepted circumstances (“the excepted increase”),
before the end of the period of 12 months beginning with the date of the excepted increase, the annual rate of the individual's pension is increased in circumstances which would (apart from that sub-paragraph) be excepted circumstances (“the subsequent increase”), and
the class by virtue of which sub-paragraph (1)(b) is satisfied on the subsequent increase (“the new class”) is not the class by virtue of which it was satisfied on the excepted increase.
If the purpose, or one of the main purposes, of the individual's being included in the new class is to increase the annual rate of the individual's pension without benefit crystallisation event 3 occurring, the subsequent increase is not in excepted circumstances.
Condition B is that—
the entitlement to payment of a scheme pension at an increased annual rate is under an arrangement that is a collective money purchase arrangement, and
at the time when the annual rate of the individual's pension is increased, all the scheme pensions being paid under collective money purchase arrangements are increased at the same rate.
Annotations
Textual amendments
- F1
Sch. 32 para. 10(A1) inserted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 22(5), 25(1); S.I. 2022/874, reg. 2
- F2
Sch. 32 para. 10 renumbered as Sch. 32 para. 10(1) (retrospective to 6.4.2006) by Finance Act 2008 (c. 9), Sch. 29 paras. 7(2), 12(3)
- F3
Words in Sch. 32 para. 10(1) substituted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 22(6)(a), 25(1); S.I. 2022/874, reg. 2
- F4
Sch. 32 para. 10(1)(za) inserted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 22(6)(b), 25(1); S.I. 2022/874, reg. 2
- F5
Word in Sch. 32 para. 10(1)(a) omitted (1.8.2022) by virtue of Finance Act 2021 (c. 26), Sch. 5 paras. 22(6)(c), 25(1); S.I. 2022/874, reg. 2
- F6
Sch. 32 para. 10(1)(b) substituted (retrospective to 6.4.2006) by Finance Act 2008 (c. 9), Sch. 29 paras. 7(3), 12(3)
- F7
Word in Sch. 32 para. 10(1)(b) omitted (1.8.2022) by virtue of Finance Act 2021 (c. 26), Sch. 5 paras. 22(6)(d), 25(1); S.I. 2022/874, reg. 2
- F8
Sch. 32 para. 10(2)-(4) inserted (retrospective to 6.4.2006) by Finance Act 2008 (c. 9), Sch. 29 paras. 7(4), 12(3)
- F9
Sch. 32 para. 10(5) inserted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 22(7), 25(1); S.I. 2022/874, reg. 2
Modifications
- C1
Sch. 32 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), 16
- C2
Sch. 32 applied (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 23(5)
Commencement
- I1
Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284
Notes on Schedule 32
Textual amendments
- F1
Word in Sch. 32 heading omitted (for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2024 (c. 3), Sch. 9 paras. 13(3), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4; and by S.I. 2024/1012, regs. 1(2)(3), 17)
- F2
Words in Sch. 32 shoulder note substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 13(2), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4; and by S.I. 2024/1012, regs. 1(2)(3), 17)