# The Taxation of Pension Schemes (Transitional Provisions) Order 2006, Article 23C

Extent: E+W+S+N.I.

(1) Schedule 29 (registered pension schemes: authorised lump sums - supplementary) is modified as follows.
(2) For paragraph (aa) of paragraph 1(1) (pension commencement lump sum) substitute—
“(aa) the member becomes entitled to it either—
(i) in connection with becoming entitled to a relevant pension (or dies after becoming entitled to it, but before becoming entitled to the relevant pension in connection with which it was anticipated that the member would become entitled to it), or
(ii) in connection with a trivial commutation lump sum within paragraph 7A,”.
(3) In paragraph 7(1) (trivial commutation lump sum), after the words “trivial commutation lump sum if” insert “it is a lump sum within paragraph 7A or”.
(4) After paragraph 7 insert—
“7A. (1) A lump sum is within this paragraph if—
(a) it does not exceed £10,000;
(b) the member has reached normal minimum pension age (or the ill-health condition is met) ...;
(c) it is paid when all or part of the member’s lump sum allowance is available;
(d) except for any pension to which the member had an actual entitlement on or before 5th April 2006, it extinguishes the member’s entitlement to benefits under the pension scheme;
(e) the PCLS conditions are satisfied.
(2) The PCLS conditions are that—
(a) the lump sum is paid in connection with a pension commencement lump sum (“PCLS”);
(b) that PCLS would not have been a PCLS had the modifications in paragraph 34 of Schedule 36 not applied;
(c) the lump sum is paid no later than one month after the PCLS;
(d) since the payment of the PCLS—
(i) no contribution in respect of the member has been made into the scheme,
(ii) no recognised transfer in respect of the member has been made into or out of the scheme, and
(iii) no annuity or scheme pension has been purchased by the application of the sums or assets held by the scheme for the benefit of the member. ”.
(5) After paragraph 9 insert—
“9A. If a lump sum is a trivial commutation lump sum by virtue of its being within paragraph 7A, the member shall be treated as not having any uncrystallised rights under an arrangement under the pension scheme immediately before it was paid.”.

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Source: https://www.legislation.gov.uk/uksi/2006/572/article/23C (the official version)
Page: https://openlegislation.uk/taxation-of-pension-schemes-transitional-provisions-order-2006/article-23C
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.