Paragraph 13

(1)

The lump sum payable under regulation 12(8) must not be such as to cause the total lump sums payable on death to exceed the permitted amount.

(2)

The total lump sums payable on death are the total of—

(a)

any lump sum death benefit which the person has elected to provide for under regulation 4(1)(b), 5(4) or 6(2)(a);

(b)

any lump sum payable under regulation 12(8); and

(c)

any benefits similar to lump sum death benefit 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 1992 Regulations.

(4)

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

(5)

The participator’s remuneration is the greatest of U, V and W, where—

U is what the participator’s final remuneration would have been if the date of death had been the material date,
V is the participator’s highest year’s adjusted salary for the purpose of calculating U, and
W is the participator’s total taxable earnings during any period of 12 months ending not more than 3 years before the date of death, increased as mentioned in paragraph 3(1).