# The Taxation of Pension Schemes (Transitional Provisions) Order 2006, Article 23ZA: Pension commencement lump sums where no pension is paid before death


(1) Subject to articles 23ZD and 23ZE, in a case where an individual has received a pension commencement lump sum, or part of a pension commencement lump sum, but dies before becoming entitled to the pension in connection with the lump sum, Schedule 36 is modified as follows.
(2) For paragraph 31(3) (entitlement to lump sums exceeding 25% of uncrystallised rights – the pension condition) substitute—
“(3) The pension condition is that, the scheme administrator considers that, had the individual not died—
(a) the individual would have become entitled to all of the pensions payable to the individual under arrangements under the pension scheme (to which the individual did not have an actual entitlement on or before 5th April 2006) on the same date , and
(b) the individual would not have become entitled to more than one pension commencement lump sum in connection with becoming entitled to those pensions. ”.
(3) In determining the amount of the additional lump sum amount under paragraph 2(2) of Schedule 29, as modified by paragraph 34(3) of Schedule 36 (entitlement to lump sums exceeding 25% of uncrystallised rights: definition of “permitted maximum” in relation to a pension commencement lump sum), it is to be assumed that the member became entitled immediately before death to the present payment of the relevant pension in connection with which the lump sum in question is paid.

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