Article 23 Modification of paragraph 34 of Schedule 36F1

Paragraph (2) below specifies modifications of paragraph 34 of Schedule 36 (entitlement to lump sums exceeding 25% of uncrystallised rights: definition of “permitted maximum” in relation to a pension commencement lump sum) that apply in the circumstances mentioned in article 21.

In sub-paragraph (3), for sub-paragraph (1) of the modified paragraph 2 of Schedule 29, substitute—

“(1)

In paragraph 1 “the permitted maximum”, in relation to a lump sum, means—

$$\left(A\times 1.2\right)+B-\frac{TV}{4}$$

where—

• A is the value of the member’s uncrystallised lump sum rights under the pension scheme on 5th April 2006, calculated in accordance with paragraph 32 of Schedule 36;

• B is the additional lump sum amount (see sub-paragraphs (2) to F2(7));

• TV is the value of all sums and assets held for the purposes of, or representing accrued rights under, the pension scheme that have been transferred from it as mentioned in article 21(1)(b) of the Taxation of Pension Schemes (Transitional Provisions) Order 2006.”.