Legislation – Finance Act 2024

“(3)

Otherwise, for paragraph 2 of Schedule 29 substitute—

“2

(1)

In paragraph 1 “the permitted maximum”, in relation to a lump sum, means an amount equal to—

$A–B$

where—

A is the value of the individual’s relevant uncrystallised lump sum rights on 5 April 2006 (calculated in accordance with paragraphs 25 and 26), as adjusted under sub-paragraph (2);

B is the aggregate of the amounts of each pension commencement lump sum to which the individual has previously become entitled, as adjusted under sub-paragraph (3) (or, if the individual has not previously become entitled to a pension commencement lump sum, is nil).

(2)

The adjustment referred to in the definition of A is the multiplication of the value of the individual’s relevant uncrystallised lump sum rights on 5th April 2006 by 1.2 (being £1,800,000 divided by £1,500,000).

(3)

The adjustment of the amount of a pension commencement lump sum to which the individual has previously become entitled referred to in the definition of B is the multiplication of the amount by—

$\frac{\pounds 1,800,000}{C}$

where C is—

1. (a)

   if the individual became entitled to the lump sum before 6th April 2012, the standard lifetime allowance at that time;

2. (b)

   otherwise, £1,800,000.”