(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)
[PN8.16]
A widow’s/widower’s or dependant’s pension
(including an allocated pension - see
PSI12.1.2) may be commuted
for triviality (but not on any other grounds). The time and
circumstances in which such a pension may be commuted are as set
out in
PSI8.3.4-6 above but are extended to
include the time at which the member’s own pension is
commuted on grounds of triviality. Widows’, widowers’
or dependants’ pensions which are commuted on grounds of
triviality are not subject to a tax charge under section 599 ICTA
1988. A member in this context can include an ex-spouse (see
PSI3.1.1).
