PSI8.3.1 - Commutation for Triviality or
Serious Ill Health: General
-
(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)
A scheme member can normally commute his or her pension for
a lump sum only within prescribed limits (see Section 1 of this
Part). There are however two situations where these limits can be
set aside and the member can commute the whole of his or her
pension including benefits derived from the payment of AVCs
(whether under the employer’s scheme(s) or a Free-Standing
Additional Voluntary Contributions Scheme) first set up on or after
8 April 1987 which are normally non-commutable (see
PSI8.1.5). These are when:
- the pension is trivial in amount (see
PSI8.3.2-11), or
- the member is in exceptional circumstances
of serious ill health (see
PSI8.3.15-23).
Contact: | Date issued: | Next review:
