Section 554W — Income Tax (Earnings and Pensions) Act 2003: Exclusions: certain retirement benefits etc

Exclusions: certain retirement benefits etc 554W 1 This section applies if—

a a relevant benefit is provided under a relevant scheme by way of a payment of a lump sum wholly out of rights which A has under the scheme, b A's rights out of which the lump sum is paid are, wholly or partly, pre-6 April 2011 lump sum rights, and c the payment of the lump sum is a relevant step within section 554C.

2 Chapter 2 does not apply by reason of the relevant step.

3 If A's rights out of which the lump sum is paid are only partly pre-6 April 2011 lump sum rights, the relevant step is to be treated for the purposes of this Part as being two separate relevant steps—

a one in relation to the lump sum so far as it is paid out of rights which are pre-6 April 2011 lump sum rights, and b one in relation to the lump sum so far as it is paid out of rights which are not pre-6 April 2011 lump sum rights, with subsection (2) applying only in relation to the separate relevant step mentioned in paragraph (a).

4 In order to give effect to subsection (3), the lump sum is to be apportioned between the two separate relevant steps on a just and reasonable basis.

5 In this section— “ pre-6 April 2011 lump sum rights ” means rights, which accrued before 6 April 2011, specifically to receive relevant benefits by way of lump sum payments, “ relevant benefit ” has the same meaning as in Chapter 2 of Part 6, and “ relevant scheme ” means an employer-financed retirement benefits scheme (within the meaning of that Chapter) or a superannuation fund to which section 615(3) of ICTA applies.