Section 185J — Finance Act 2014: Effect of repayment of certain pre-6 April 2015 lump sums

Effect of repayment of certain pre-6 April 2015 lump sums 185J 1 For the purposes of this Part—

a a lump sum to which this section applies is treated as never having been paid, and b the payment by which it is repaid is treated as not being a payment.

2 This section applies to a lump sum if—

a the sum is paid by a registered pension scheme to a member of the scheme in respect of a money purchase arrangement, b the sum is paid to the member in connection with a pension under the scheme to which it is expected that the member will become entitled (“the expected pension”),

c the expected pension is income withdrawal, a lifetime annuity or a scheme pension, d the sum is paid before the member becomes entitled to the expected pension, e either—

i the sum is paid on or after 19 September 2013 but before 6 April 2015, or ii the sum is paid before 19 September 2013, a contract for a lifetime annuity is entered into to provide the expected pension, and on or after 19 March 2014 the contract is cancelled, f before the member becomes entitled to the expected pension, the member repays the sum to the pension scheme that paid it, and g the repayment is made before 6 October 2015.

3 For the purposes of subsection (2), if the circumstances are as described in subsection (2)(e)(ii), the member is treated as not having become entitled to the expected pension as a result of the cancelled contract having been entered into.