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Paragraph 13

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

The lump sum death benefit under regulation 13 must not be such as to cause the total of that lump sum and any death benefits totalling £2,500 or more that are payable under relevant schemes to exceed the permitted amount.

(2)

Relevant schemes are—

(a)

approved schemes;

(b)

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

(c)

free-standing additional voluntary contribution schemes;

(d)

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

(e)

the scheme constituted by the Superannuation Regulations.

(3)

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

(4)

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).