Paragraph 11

(1)

The lump sum secured by any death benefit contributions must not be such as to cause the total lump sum death benefits to exceed the permitted amount.

(2)

The total lump sum death benefits are the total of–

(a)

the lump sum secured by the contributions, and

(b)

any similar benefits totalling £1,000 or more that are payable under relevant schemes.

(3)

The relevant schemes are–

(a)

approved schemes,

(b)

schemes approved under Chapter IV of Part XIV of the Taxes Act,

(c)

free-standing additional voluntary contributions schemes,

(d)

retirement annuity contracts approved under Chapter III of Part XIV of the Taxes Act, and

(e)

the scheme constituted by the 1988 Regulations.

(4)

The permitted amount is £5,000 or, if greater, 4 times the death benefit contributor’s remuneration.

(5)

The death benefit contributor’s remuneration is the greatest of S, T and U, where–

is what his final remuneration would have been if the date of his death had been the material date,

is his highest year’s adjusted earnings for the purpose of calculating S, and

is his total taxable earnings during any period of 12 months ending not more than 3 years before the date of his death, increased as mentioned in paragraph 3(1).