{
  "url": "https://openlegislation.uk/mps-senedd-and-assembly-pension-schemes-tax-regulations-2025/regulation-16",
  "json_url": "https://openlegislation.uk/mps-senedd-and-assembly-pension-schemes-tax-regulations-2025/regulation-16.json",
  "legislation": "uksi/2025/52",
  "legislation_title": "The MPs’, Senedd and Assembly Pension Schemes (Tax) Regulations 2025",
  "legislation_url": "https://openlegislation.uk/mps-senedd-and-assembly-pension-schemes-tax-regulations-2025",
  "path": "regulation/16",
  "kind": "regulation",
  "number": "16",
  "heading": "Lifetime allowance windfall charge",
  "text": "(1) A charge to income tax, to be known as the lifetime allowance windfall charge, arises where—\n(a) a member had a specified benefit crystallisation event in a tax year in the period beginning with 2020-21 and ending with 2022-23,\n(b) a rectification exercise takes place in relation to the relevant pension scheme, and\n(c) as a result of that rectification exercise, there is a further chargeable amount in respect of the specified benefit crystallisation event.\n(2) The rate of the lifetime allowance windfall charge is 25% in respect of the further chargeable amount.\n(3) The person liable to the lifetime allowance windfall charge is the scheme administrator of the relevant pension scheme in relation to which the rectification exercise took place.\n(4) The scheme administrator is liable to the lifetime allowance windfall charge whether or not—\n(a) the scheme administrator, and\n(b) the member,\nare resident or domiciled in the United Kingdom.\n(5) The further chargeable amount is not to be treated as income for any purpose of the Income Tax Acts.\n(6) In this regulation—\n“chargeable amount” has the meaning given in section 215(3) of FA 2004, as that section had effect immediately before 6 April 2024;\n“further chargeable amount” means—\n(a) a chargeable amount that would have arisen, or\n(b) the amount by which a chargeable amount would have increased,\nif a rectification exercise had been retrospective;\n“specified benefit crystallisation event” means a benefit crystallisation event, other than benefit crystallisation event 7, which occurred—\n(a) under a relevant pension scheme, or\n(b) under a registered pension scheme, if it occurred after a benefit crystallisation event had already occurred in relation to the member under a relevant pension scheme.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "Section 215 was amended by paragraph 41 of Schedule 10 to the Finance Act 2005, paragraph 15 of Schedule 29 to the Finance Act 2008 and paragraph 14 of Schedule 2 to the Finance Act 2009, before its repeal by paragraph 3 of Schedule 9 to FA 2024 with effect for the tax year 2024-25 and subsequent tax years."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2025/52/regulation/16",
    "retrieved_at": "2026-10-31T10:28:11.255071+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."
}