(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)
The preceding paragraphs of this Section apply solely to
deferred pensions. Lump sum retirement benefits are not affected in
the same way since generally speaking the preservation requirements
do not apply to such benefits (see
PSI8.1.3), except where short
service benefit is commuted for triviality (see Part 8 (
PSI8.1.1) and paragraphs 63-65
of Joint Office Memorandum No 78). Normal Inland Revenue limits
apply to an early leaver's lump sum derived from commutation of
pension.
