{
  "url": "https://openlegislation.uk/taxation-of-pension-schemes-transitional-provisions-order-2006/article-25CC",
  "json_url": "https://openlegislation.uk/taxation-of-pension-schemes-transitional-provisions-order-2006/article-25CC.json",
  "legislation": "uksi/2006/572",
  "legislation_title": "The Taxation of Pension Schemes (Transitional Provisions) Order 2006",
  "legislation_url": "https://openlegislation.uk/taxation-of-pension-schemes-transitional-provisions-order-2006",
  "path": "article/25CC",
  "kind": "article",
  "number": "25CC",
  "heading": "Circumstance C: tax treatment of stand-alone lump sums",
  "text": "(1) Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes) has effect with the following modifications in relation to a member of a pension scheme to whom a stand-alone lump sum is paid in circumstances where article 25B(4) (circumstance C) applies.\n(2) That Chapter has effect as if, after section 637G (trivial commutation lump sums and winding-up lump sums) there were inserted—\n“Stand-alone lump sums\n637GA (1) Subject to subsection (2), no liability to income tax arises on a stand-alone lump sum paid under a registered pension scheme.\n(2) If the amount of the stand-alone lump sum exceeds the permitted maximum, section 579A (pensions) applies to the excess as it applies to any pension under a registered pension scheme.\n(3) In subsection (2) “the permitted maximum”, in relation to a stand-alone lump sum, means the lower of—\n(a) the maximum amount of a stand-alone lump sum that could have been paid to the individual with no liability to income tax on 5 April 2023, and\n(b) so much of the individual’s lump sum and death benefit allowance as is available on the individual becoming entitled to the lump sum (see section 637S).\n(4) In determining the amount of the individual’s lump sum and death benefit allowance that is available on the individual becoming entitled to the lump sum, paragraph 20H of Schedule 36 of FA 2004 (individual’s enhanced lump sum and death benefit allowance) has effect as if, in sub-paragraph (2) of that paragraph, B (the aggregate of the lump sum and death benefit allowance enhancement factors operating in relation to the individual) were zero.”\n(3) Section 637Q of ITEPA 2003 (availability of individual’s lump sum allowance), has effect as if, in the definition of “relevant lump sum” in subsection (2)(b) of that section, there were included a reference to a stand-alone lump sum.\n(4) For the purposes of that section, the “non-taxable amount” of a stand-alone lump sum is to be treated as being an amount equal to 25% of the lump sum.\n(5) Section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance) has effect as if, in the definition of “relevant lump sum” in subsection (2)(b) of that section, there were included a reference to a stand-alone lump sum.\n(6) Section 637U of ITEPA 2003 (availability of individual’s allowances where lump sums or lump sum death benefits already paid by non-UK schemes) has effect as if references in that section to a pension commencement lump sum included a stand-alone lump sum.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Arts. 25-25D substituted for art. 25 (25.7.2006) by The Taxation of Pension Schemes (Transitional Provisions) (Amendment No. 2) Order 2006 (S.I. 2006/2004), arts. 1(1), 3"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Arts. 25CA-25CC inserted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 95(5), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in art. 25CC(1) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1(3), 11(4)(a)(i)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in art. 25CC(1) inserted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1(3), 11(4)(a)(ii)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in art. 25CC(2) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 25(17); and said words also substituted by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 3) Regulations 2024 (S.I. 2024/1167), regs. 1(2)(3), 4(10)(a) (with reg. 6)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in Art. 25CC(2) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 3) Regulations 2024 (S.I. 2024/1167), regs. 1(2)(3), 4(10)(b) (with reg. 6)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in art. 25CC(5) inserted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1(3), 11(4)(b)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Art. 25CC(6) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2026 (S.I. 2026/698), regs. 1(3)(6), 14(7)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2006/572/article/25CC",
    "retrieved_at": "2026-10-29T04:35:56.817069+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}