Paragraph 129 Paragraphs 125 to 128: interpretation

“Lump sum transitional tax-free amount”, in relation to an individual, means the total of—

“Lump sum and death benefit transitional tax-free amount”, in relation to an individual, means the total of—

For the purposes of sub-paragraph (2)—

“Complete evidence”, in relation to an individual’s lump sum and death benefit transitional tax-free amount, means evidence of—

that is comprised, or any part of which is comprised, in the individual’s lump sum and death benefit transitional tax-free amount.

“Lifetime allowance previously-used amount”, in relation to an individual, means (subject to sub-paragraphs (4B) and (4C)) the amount that would have been the previously used amount for the purposes of section 219 of FA 2004 (availability of individual’s lifetime allowance) if a benefit crystallisation event (within the meaning of that section) had occurred in relation to the individual immediately before 6 April 2024.

Sub-paragraph (4C) applies where—

The amount determined under sub-paragraph (4A) is to be reduced F8(but not below zero) by the amount given by the following formula—

where—

• “A” is the amount or (if more than one) the sum of the amounts mentioned in sub-paragraph (4B)(b);

• “B” is the individual’s lifetime allowance at the time the individual reached the age of 75.

In paragraphs 125 to 128 and this paragraph—

• F9“benefit crystallisation event”, followed by a number, has the same meaning as in Part 4 of FA 2004 (see section 216 of that Act);

• “certification administrator”, in relation to an individual, means—

  1. (a)

     the scheme administrator of a registered pension scheme of which the individual is a member or, if the individual is deceased, of which the individual was a member immediately before death, or

  2. (b)

     an insurance company to which a registered pension scheme has transferred sums or assets to secure the payment to the individual of a scheme pension or a lifetime annuity;

• “complete evidence” has the meaning given by sub-paragraph (4);

• “defined benefits lump sum death benefit” has the same meaning as in Part 4 of FA 2004;

• “drawdown pension fund”, in relation to an individual, has the same meaning as in Part 4 of FA 2004 (see Part 1 of Schedule 28 to that Act);

• “entitled” (in relation to a lump sum) has the same meaning as in Part 4 of FA 2004;

• “insurance company” has the same meaning as in Part 4 of FA 2004;

• “lifetime allowance” has the same meaning as in Part 4 of FA 2004;

• F10“lifetime allowance previously-used amount” has the meaning given by sub-paragraphs (4A) to (4C);

• “lump sum and death benefit transitional tax-free amount” has the meaning given by sub-paragraphs (2) and (3);

• “lump sum death benefit” has the same meaning as in Part 4 of FA 2004;

• “lump sum transitional tax-free amount” has the meaning given by sub-paragraph (1);

• “member” has the same meaning as in Part 4 of FA 2004;

• “non-qualifying person” has the same meaning as in section 206 of FA 2004;

• “pension commencement lump sum” has the same meaning as in Part 4 of FA 2004;

• “the Provision of Information Regulations” means the Registered Pension Schemes (Provision of Information) Regulations (S.I. 2006/567);

• “scheme administrator” has the same meaning as in Part 4 of FA 2004;

• “serious ill-health lump sum” has the same meaning as in Part 4 of FA 2004;

• F11“stand-alone lump sum” has the meaning given by article 25 of the Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572);

• “standard lifetime allowance”, in relation to an individual, has the same meaning as in Part 4 of FA 2004 as that Part has effect in relation to the individual;

• “transitional tax-free amount certificate” means a certificate under paragraph 127;

• “uncrystallised funds pension lump F12sum” has the same meaning as in Part 4 of FA 2004.

• “uncrystallised funds pension lump sum death benefit” has the same meaning as in Part 4 of FA 2004;

A reference in any of paragraphs 125 to 128 or this paragraph to a provision of FA 2004 is to that provision as it had effect immediately before 6 April 2024.