Legislation – Finance Act 2024
Schedule 9Pensions
Part 6Commencement and transitional provision etc
Availability of individual’s lump sum allowance
125
(1)
This paragraph applies where—
(a)
one or more benefit crystallisation events within the meaning of Part 4 of FA 2004 occurred in relation to an individual before 6 April 2024, and
(b)
a relevant benefit crystallisation event within the meaning of section 637Q of ITEPA 2003 (availability of individual’s lump sum allowance) occurs in relation to the individual on or after that date.
(2)
Where the individual’s lifetime allowance previously-used amount is equal to or greater than the individual’s lifetime allowance, none of the individual’s lump sum allowance is available on the occurrence of the relevant benefit crystallisation event.
(3)
Otherwise, the amount of the individual’s lump sum allowance that is available on the occurrence of the relevant benefit crystallisation event is—
(a)
the amount of that allowance that is available in accordance with section 637Q of ITEPA 2003 on the occurrence of that event, less
(b)
an amount equal to 25% of the individual’s lifetime allowance previously-used amount;
or, if that produces a negative result, nil.
(4)
(5)
In such a case, the amount of the individual’s lump sum allowance that is available on the occurrence of the relevant benefit crystallisation event is—
(a)
the amount of that allowance that is available in accordance with section 637Q of ITEPA 2003 on the occurrence of that event, less
(b)
the individual’s lump sum transitional tax-free amount;
or, if that produces a negative result, nil.
(6)
For provision about the meaning of expressions used in this paragraph, see paragraph 129.