PSI8.1.31 - Lump Sum Benefits and Communication: Maximum Lump Sum Benefits - Retained Lump Sum Benefits - Definitions

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

Retained lump sum retirement benefits include:

12. any retirement lump sums, whether in the form of a separate benefit or in commutation of pension, received or receivable under approved occupational pension schemes, schemes seeking approval, relevant statutory schemes, or under any overseas schemes of previous employers accepted as corresponding (see PSI15.1.8),
13. lump sums payable from personal pensions arising from contributions made during a period when eligibility for the personal pension was under s632A (see PSI3.1.25), unless e. below applies.
14. lump sums payable in commutation of personal pensions or retirement annuities relating to non-pensionable service with the current or an earlier employer, or to previous periods of self- employment.

The following may, however, be ignored:

15. lump sums under a. b. or c. above if they do not exceed £2,500 in aggregate,
16. any lump sums received or receivable from retirement benefits schemes, personal pension schemes or retirement annuity contracts relating to wholly concurrent employments or occupations (see PSI6.5.69),
17. any lump sum received or receivable from a personal pension scheme which arises from contributions paid during a period of eligibility for the personal pension under s632B ("concurrency" criteria, see PSI3.1.26) and
18. lump sums received or receivable under any of the State schemes (see PSI6.1.9).