Regulation 5 Insertion of regulation 4A in the principal Regulations

After regulation 4 insert—

“Reliance on paragraph 15A of Schedule 36 (lifetime allowances: “enhanced protection”: taking account of death benefit)

4A.

(1)

This regulation applies if a person is paid a relevant lump sum death benefit in respect of an individual under an arrangement in the circumstances specified in paragraph 15A(1)(a) of Schedule 36.

(2)

That person may give notice of intention to rely on paragraph 15A of Schedule 36 (“paragraph 15A”).

(3)

If that person intends to rely on paragraph 15A, that person must give a notification to the Revenue and Customs on or before the closing date.

(4)

The closing date is the date specified by paragraph (5); but if paragraph (6) applies and specifies a later closing date, the closing date is the date specified in paragraph (6).

(5)

The date specified by this paragraph is the date determined in accordance with the following rules.

First rule: Find the 31st January following the tax year in which the relevant lump sum death benefit is paid.

Second rule: Find the 31st January five years after that.

The date so found is the closing date.

(6)

This paragraph applies if an assessment to income tax is made under section 217(2) on a person to whom a lump sum death benefit has been paid; and, if this paragraph applies, the closing date specified by this paragraph is 5th April in the tax year following the tax year in which the assessment is made.”.