Pensions tax: authorised lump-sum payments

Resource type: Practice note

Status: Maintained

Jurisdictions: England, Scotland, Wales

This practice note examines the various lump-sum benefits that registered pension schemes can provide as authorised payments. Among other areas, the note covers the rules relating to payment of pension commencement lump sums (including a checklist of qualifying criteria), trivial commutation lump sums, winding-up lump sums and serious-ill-health lump sums as well as the various forms of lump-sum death benefits payable after a member has died. The note reflects changes to these rules introduced from 6 April 2011 by the Finance Act 2011.

Jonathan Sharp, Baker & McKenzie LLP

Register for free access

To access this resource and thousands more, register for a free, no-obligation trial of Practical Law. Register using the button below, telephone +44 (0)20 7202 1220 or e-mail info@practicallaw.com.

A free trial will give you:

✔	Unlimited access to Practical Law online know-how
✔	Thousands of market standard documents and clauses
✔	Daily alerts and weekly update e-mails on key legal developments in your practice area
	Register

Log in

To access this resource, log in below or register for free access.

Contact us

Our customer services team are available every working day 8.30am to 7pm (GMT).

Actions

Resource information

Show resource details Hide resource details

Resource ID: 0-376-6607
Products: PLC UK Pensions, PLC UK Public Sector
This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.

Ask a question

Related content

Related content

Topics

Tax and Accounting: PensionsTax and Accounting: Pensions (http://uk.practicallaw.com/8-103-1346)

Practice note: overview

Contracting out of the state second pension: overview Contracting out of the state second pension: overview (http://crossborder.practicallaw.com/topic5-504-9541)
Increase in minimum pension age: a quick guide Increase in minimum pension age: a quick guide (http://crossborder.practicallaw.com/topic6-501-0915)
Pensions tax: overview Pensions tax: overview (http://crossborder.practicallaw.com/topic6-204-0440)

Practice notes

Pension schemes: benefits on retirement Pension schemes: benefits on retirement (http://crossborder.practicallaw.com/topic5-502-1740)
Pensions tax: authorised pension payments Pensions tax: authorised pension payments (http://crossborder.practicallaw.com/topic4-380-6324)
Pensions tax: relaxing the requirements to take benefits by age 75 Pensions tax: relaxing the requirements to take benefits by age 75 (http://crossborder.practicallaw.com/topic0-504-9237)
Pensions tax: transitional protection Pensions tax: transitional protection (http://crossborder.practicallaw.com/topic1-208-3955)

Standard documents

Deed of amendment: Finance Act 2011 Deed of amendment: Finance Act 2011 (http://crossborder.practicallaw.com/topic4-507-2264)
Pension scheme trust deed and rules Pension scheme trust deed and rules (http://crossborder.practicallaw.com/topic1-501-5637)

Checklist

Updating scheme rules for the Finance Act 2004: checklist Updating scheme rules for the Finance Act 2004: checklist (http://crossborder.practicallaw.com/topic8-501-0976)

Glossary

Annual allowance Annual allowance (http://crossborder.practicallaw.com/topic6-201-6478)
Authorised payment Authorised payment (http://crossborder.practicallaw.com/topic7-207-2096)
BCE 6 BCE 6 (http://crossborder.practicallaw.com/topic7-380-6450)
BCE 7 BCE 7 (http://crossborder.practicallaw.com/topic9-380-7482)
BCE 9 BCE 9 (http://crossborder.practicallaw.com/topic4-507-1815)
Benefit crystallisation event (BCE) Benefit crystallisation event (BCE) (http://crossborder.practicallaw.com/topic9-380-6406)
Bridging pension Bridging pension (http://crossborder.practicallaw.com/topic9-376-0210)
Defined benefits lump-sum death benefit Defined benefits lump-sum death benefit (http://crossborder.practicallaw.com/topic8-204-0458)
Drawdown pension fund lump-sum death benefit Drawdown pension fund lump-sum death benefit (http://crossborder.practicallaw.com/topic3-507-1123)
Enhanced protection Enhanced protection (http://crossborder.practicallaw.com/topic4-204-0653)
Guaranteed minimum pension (GMP) Guaranteed minimum pension (GMP) (http://crossborder.practicallaw.com/topic4-107-6676)
Ill-health condition Ill-health condition (http://crossborder.practicallaw.com/topic0-204-0966)
Income withdrawal Income withdrawal (http://crossborder.practicallaw.com/topic3-207-2098)
Lifetime allowance Lifetime allowance (http://crossborder.practicallaw.com/topic8-201-6477)
Lifetime allowance charge Lifetime allowance charge (http://crossborder.practicallaw.com/topic8-507-1314)
Lifetime allowance excess lump sum Lifetime allowance excess lump sum (http://crossborder.practicallaw.com/topic1-501-1125)
Lifetime annuity Lifetime annuity (http://crossborder.practicallaw.com/topic1-207-2099)
Normal minimum pension age Normal minimum pension age (http://crossborder.practicallaw.com/topic5-204-0445)
Normal pension age (NPA) Normal pension age (NPA) (http://crossborder.practicallaw.com/topic0-376-5467)
Pension commencement lump sum Pension commencement lump sum (http://crossborder.practicallaw.com/topic5-204-0426)
Pension credit Pension credit (http://crossborder.practicallaw.com/topic2-205-8984)
Pension debit Pension debit (http://crossborder.practicallaw.com/topic5-205-8987)
Pension input amount Pension input amount (http://crossborder.practicallaw.com/topic4-504-0739)
Pension protection lump-sum death benefit Pension protection lump-sum death benefit (http://crossborder.practicallaw.com/topic4-204-0479)
Primary protection Primary protection (http://crossborder.practicallaw.com/topic4-204-0648)
Protected rights Protected rights (http://crossborder.practicallaw.com/topic6-207-4963)
Registered pension scheme Registered pension scheme (http://crossborder.practicallaw.com/topic5-201-6474)
Serious-ill-health lump sum Serious-ill-health lump sum (http://crossborder.practicallaw.com/topic8-204-0444)
Short-service refund lump sum Short-service refund lump sum (http://crossborder.practicallaw.com/topic4-385-3358)
Special lump-sum death benefits charge Special lump-sum death benefits charge (http://crossborder.practicallaw.com/topic0-507-1271)
Trivial commutation lump sum Trivial commutation lump sum (http://crossborder.practicallaw.com/topic4-204-0441)
Unauthorised payment Unauthorised payment (http://crossborder.practicallaw.com/topic5-207-2097)
Uncrystallised funds lump-sum death benefit Uncrystallised funds lump-sum death benefit (http://crossborder.practicallaw.com/topic2-216-2952)
Winding-up lump sum Winding-up lump sum (http://crossborder.practicallaw.com/topic6-358-8952)

External resource

Registered pension schemes manual (RPSM) Registered pension schemes manual (RPSM) (http://crossborder.practicallaw.com/topic2-204-0418)

Legislation

Finance Act 2011 Finance Act 2011 (http://crossborder.practicallaw.com/topic5-506-9614)

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247243501809", "objName" : "Pensions tax authorised lump-sum payments", "userID" : "2", "objUrl" : "http://crossborder.practicallaw.com/cs/Satellite/0-376-6607?source=relatedcontent", "pageType" : "", "contentAccessed" : "false", "analyticsPermCookie" : "2-abc4ee1:13ecb83be23:547b", "analyticsSessionCookie" : "2-abc4ee1:13ecb83be23:547c", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }