# The Taxation of Pension Schemes (Transitional Provisions) Order 2006, Article 29: Member’s unsecured pension funds

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

(1) In the case of an individual who meets the conditions set out in paragraph (2), paragraphs (3) to (5) apply.
(2) The conditions are as follows.
Condition A
The individual had not reached the age of 75 on 6th April 2006.
Condition B
The individual is a member of a scheme which falls within paragraph 1(1) of Schedule 36.
Condition C
The individual was, on 5th April 2006 entitled to a pension which was not provided under a defined benefits arrangement and which—
(a)took the form of income drawdown under a retirement benefits scheme approved for the purposes of Chapter 1 of Part 14 of ICTA; or
(b)was paid from the resources of—
(i)a small self-administered scheme as defined in the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Small Self-Administered Schemes) Regulations 1991, or
(ii)a small self-administered scheme that had been approved under section 590 of ICTA,
and the rules of the scheme on 5th April 2006 did not require the purchase of an annuity in respect of the individual; or
(c)took the form of income withdrawal under a personal pension scheme approved under Chapter 4 of Part 14 of ICTA pursuant to section 634Aof that Act.
(3) Paragraph 8 of Schedule 28 (member’s unsecured pension fund) is modified as follows—
(a) for sub-paragraph (1A) substitute—
“(1A) For the purposes of this Part sums or assets held for the purposes of an arrangement are member-designated funds if they have at any time been applied to provide a pension which—
(a) took the form of income drawdown under a retirement benefits scheme approved for the purposes of Chapter 1 of Part 14 of ICTA;
(b) was paid from the resources of—
(i) a small self-administered scheme as defined in the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Small Self-administered Schemes) Regulations 1991, or
(ii) a small self-administered scheme that had been approved under section 590 of ICTA;
and the rules of scheme on 5th April 2006 did not require the purchase of an annuity in respect of the individual; or
(c) took the form of income withdrawal under a personal pension scheme approved under Chapter 4 of Part 14 of ICTA pursuant to section 634Aof that Act.”.
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) For paragraph 9(1) of Schedule 28 substitute—
“9 (1) “Unsecured pension year” in relation to an unsecured pension referred to in paragraph 8(1A), means—
(a) the period beginning on 6th April 2006 and ending on the earlier of—
(i) 5th April 2007, or
(ii) the date upon which the first reference period defined in paragraph 10(1A) treated as inserted by Article 5 of the Taxation of Pension Schemes (Transitional Provisions) Order 2006 terminates; and
(b) each succeeding period of 12 months.”.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Source: https://www.legislation.gov.uk/uksi/2006/572/article/29 (the official version)
Page: https://openlegislation.uk/taxation-of-pension-schemes-transitional-provisions-order-2006/article-29
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.