{
  "url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-637D",
  "json_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-637D.json",
  "legislation": "ukpga/2003/1",
  "legislation_title": "Income Tax (Earnings and Pensions) Act 2003",
  "legislation_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003",
  "path": "section/637D",
  "kind": "section",
  "number": "637D",
  "heading": "Uncrystallised funds pension lump sums",
  "text": "(1) Subject to subsection (2), where an uncrystallised funds pension lump sum is paid under a registered pension scheme—\n(a) no liability to income tax arises on 25% of the lump sum, and\n(b) section 579A (pensions) applies in relation to the remainder of the lump sum as it applies to any pension under a registered pension scheme.\n(2) If—\n(a) an uncrystallised funds pension lump sum is paid under a registered pension scheme, and\n(b) 25% of the lump sum is an amount that exceeds the permitted maximum,\nsection 579A (pensions) applies to the excess as it applies to any pension under a registered pension scheme.\n(3) In subsection (2) “the permitted maximum”, in relation to an uncrystallised funds pension lump sum paid to a member, means the lower of the following amounts—\n(a) so much of the member’s lump sum allowance as is available on the member becoming entitled to the lump sum (see section 637Q);\n(b) so much of the member’s lump sum and death benefit allowance as is available on the member becoming entitled to the lump sum (see section 637S).",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Pt. 9 Ch. 15A substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 41, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4; and (18.11.2024 for the tax year 2024-25 and subsequent tax years) by S.I. 2024/1012, regs. 1(2)(3), 17)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 637D(3)(a) substituted (for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 3(2)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 637D(3)(b) substituted (for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 3(2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/1/section/637D",
    "retrieved_at": "2026-10-29T09:18:42.395488+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}