# Finance Act 2024, Paragraph 83: Amendments of Part 3 of Schedule 36 to FA 2004

Extent: E+W+S+N.I.

(1) Paragraph 28 (pre-commencement benefit rights: no enhanced protection: permitted maximum) is amended as follows.
(2) In sub-paragraph (1) omit “paragraph 2 of”.
(3) In sub-paragraph (2), after “paragraph 2” insert “of Schedule 29”.
(4) For sub-paragraph (3) substitute—
“(3) Otherwise, for paragraph 2 of Schedule 29 substitute—
“2 (1) In paragraph 1 “the permitted maximum”, in relation to a lump sum, means an amount equal to—
A - B where—
A is the value of the individual’s relevant uncrystallised lump sum rights on 5 April 2006 (calculated in accordance with paragraphs 25 and 26), as adjusted under sub-paragraph (2);
B is the aggregate of the amounts of each pension commencement lump sum to which the individual has previously become entitled, as adjusted under sub-paragraph (3) (or, if the individual has not previously become entitled to a pension commencement lump sum, is nil).
(2) The adjustment referred to in the definition of A is the multiplication of the value of the individual’s relevant uncrystallised lump sum rights on 5th April 2006 by 1.2 (being £1,800,000 divided by £1,500,000).
(3) The adjustment of the amount of a pension commencement lump sum to which the individual has previously become entitled referred to in the definition of B is the multiplication of the amount by—
£ 1 , 800 , 000 C where C is—
(a) if the individual became entitled to the lump sum before 6th April 2012, the standard lifetime allowance at that time;
(b) otherwise, £1,800,000.””

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Source: https://www.legislation.gov.uk/ukpga/2024/3/schedule/9/paragraph/83 (the official version)
Page: https://openlegislation.uk/finance-act-2024/schedule-9/paragraph-83
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.