Regulation 11 Amendment of the Pension Protection Fund (Tax) Regulations 2006

For regulation 42 substitute—

“42.

Unless it is a lump sum falling within any of paragraphs (a) to (c) of regulation 42A, a lump sum paid under any of the following provisions is treated as if it were a lump sum paid under a registered pension scheme to which section 636A of ITEPA 2003^f1 (exemption for certain lump sums under registered pension schemes) applies—

(a)

Schedule 7 to the Pensions Act or Schedule 6 to the Pensions Order (pension compensation provisions), or

(b)

Schedule 5 to PA 2008 or Schedule 4 to P(No. 2)A(NI) 2008 (pension compensation provisions).

42A.

Each of the following is to be treated as if it were a lump sum, paid to a member under a registered pension scheme, in relation to which section 636B of ITEPA 2003^f2 (trivial commutation and winding-up lump sums) applies—

(a)

a PPF money purchase lump sum,

(b)

a lump sum under paragraph 24 of Schedule 7 to the Pensions Act or paragraph 24 of Schedule 6 to the Pensions Order (commutation of periodic compensation), where the portion of periodic compensation commuted exceeds 25%, and

(c)

a lump sum under paragraph 9 of Schedule 5 to PA 2008 or paragraph 9 of Schedule 4 to P(No. 2)A(NI) 2008 (commutation of periodic compensation), where the portion of periodic compensation commuted exceeds 25%.”.