# The Financial Assistance Scheme (Tax) Regulations 2010, Regulation 4: Lump sum payments by the Financial Assistance Scheme

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

(1) This regulation modifies Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes) in relation to certain lump sums paid by the FAS.
(2) That Chapter has effect as if, after section 637G (trivial commutation lump sums and winding-up lump sums) there were inserted—
“Financial Assistance Scheme: regulation 17D lump sums
637GA (1) Subject to subsection (2), no liability to income tax arises on a lump sum paid to an individual under regulation 17D of the Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986) (“a regulation 17D lump sum”).
(2) If the amount of the regulation 17D lump sum exceeds the permitted maximum, section 579A (pensions) applies to the excess as it applies to any pension under a registered pension scheme.
(3) In subsection (2) “the permitted maximum”, in relation to a regulation 17D lump sum, means the lower of—
(a) so much of the individual’s lump sum allowance as is available on the individual becoming entitled to the lump sum (see section 637Q), and
(b) so much of the individual’s lump sum and death benefit allowance as is available on the individual becoming entitled to the lump sum (see section 637S).
Financial Assistance Scheme: regulation 18A lump sums
637GB (1) Subject to subsection (2), no liability to income tax arises on a payment made in respect of an individual under regulation 18A of the Financial Assistance Scheme Regulations 2005 in the form of a lump sum (“a regulation 18A lump sum”).
(2) If the amount of the regulation 18A lump sum exceeds the permitted maximum, section 579A (pensions) applies to the excess as it applies to any pension under a registered pension scheme.
(3) In subsection (2) “the permitted maximum”, in relation to a regulation 18A lump sum, means so much of the individual’s lump sum and death benefit allowance as is available on the individual becoming entitled to the lump sum (see section 637S).”.
(3) Section 637Q of ITEPA 2003 (availability of individual’s lump sum allowance) has effect as if, in the definition of “relevant lump sum” in subsection (2)(b) of that section, there were included a reference to a lump sum paid to the individual under regulation 17D.
(4) Section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance) has effect as if, for the purposes of that section—
(a) a lump sum paid to the individual under regulation 17D were a “relevant lump sum”; and
(b) a payment made in respect of the individual under regulation 18A in the form of a lump sum were a “relevant lump sum death benefit”.

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Source: https://www.legislation.gov.uk/uksi/2010/1187/regulation/4 (the official version)
Page: https://openlegislation.uk/financial-assistance-scheme-tax-regulations-2010/regulation-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.