{
  "url": "https://openlegislation.uk/taxation-of-pension-schemes-transitional-provisions-order-2006/article-40",
  "json_url": "https://openlegislation.uk/taxation-of-pension-schemes-transitional-provisions-order-2006/article-40.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/40",
  "kind": "article",
  "number": "40",
  "heading": "Lump sum death benefits— death of member",
  "text": "(1) This paragraph applies to a lump sum paid—\n(a) in respect of the death, occurring before the 6th April 2006, of a member of a pension scheme;\n(b) within two years of the date upon which the administrator of the pension scheme could reasonably have known of the member’s death;\n(c) by a scheme which is treated as becoming a registered pension scheme on the 6th April 2006 by virtue of paragraph 1(1) of Schedule 36;\n(d) in accordance with the rules of that scheme as they stood—\n(i) immediately before the death; or\n(ii) immediately before the 6th April 2006; and\n(e) in circumstances which would not have led to the Commissioners withdrawing the approval of the scheme.\n(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(3) A lump sum to which paragraph (1) applies shall be chargeable to income tax in accordance with section 648B of ICTA as if—\n(a) that section had not been repealed;\n(b) references in that section to the administrator of the scheme were references to the scheme administrator of the registered pension scheme which is treated as coming into being by virtue of paragraph 1(1)(g) of Schedule 36;\n(c) subsection (3) were omitted; and\n(d) the reference in subsection (4) to the rules of the scheme were a reference to the rules of the personal pension scheme as they stood immediately before the 6th April 2006.\n(4) For the purposes of a lump sum payment to which paragraph (1) applies, regulation 5 of the Personal Pension Schemes (Information Powers) Regulations 2000 (“the 2000 Regulations”) shall continue to have effect, subject to the following modifications—\n(a) references to the scheme administrator of the personal pension scheme are to be read as references to the scheme administrator of the registered pension scheme which is treated as coming into being by virtue of paragraph 1(1)(g) of Schedule 36; and\n(b) in paragraph (2) of that regulation for “an approved personal pension scheme” substitute “the registered pension scheme”.\n(5) In section 98(5) of the Taxes Management Act 1970 the entry in Table 1 relating to regulations under section 651A(1)(b) to (d) of ICTA shall continue to have effect, so far as it relates to regulation 5 of the 2000 Regulations as saved, with modifications, by paragraph (4).\n(6) In this article and article 41—\n“the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs and, in relation to times before 18th April 2005, includes the Commissioners of Inland Revenue;\n“existing scheme” means a scheme which becomes a registered pension scheme by virtue of paragraph 1(1) of Schedule 36 (pension schemes etc.: transitional provisions and savings — deemed registration of existing schemes);\n“member” means a member of an existing scheme.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in art. 40(1)(b) substituted (with effect in accordance with art. 1 of the amending S.I.) by The Taxation of Pension Schemes (Transitional Provisions) (Amendment) Order 2006 (S.I. 2006/1962), arts. 1, 4(a)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in art. 40(1)(e) substituted (with effect in accordance with art. 1 of the amending S.I.) by The Taxation of Pension Schemes (Transitional Provisions) (Amendment) Order 2006 (S.I. 2006/1962), arts. 1, 4(b)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Art. 40(2) omitted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 25(24)(a)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Art. 40(6) inserted (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(24)(b)"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "Art. 40 in force at 6.4.2006, see art. 1(1)"
    },
    {
      "type": "footnote",
      "label": "f1",
      "text": "Section 648B was inserted by paragraph 12 of Schedule 11 to the Finance Act 1995, amended by paragraph 266 of Schedule 1 to the Income Tax (Trading and Other Income Act 2005, and repealed by Part 3 of Schedule 42 to the Finance Act 2004."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "S.I. 2000/2316."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2006/572/article/40",
    "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."
}