PSI17.2.19 - Tax Treatment of Approved Schemes and Payments by Approved Schemes: Taxation of Payments to Scheme Members - Tax on Certain Commutation payments - Separate Lump Sum Schemes

(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)

[PN17.27]

In schemes providing separate lump sums rather than lump sums derived from commutation of pension (see PSI6.5.3), where the pension is commuted, for example on grounds of triviality, the whole of the payment will normally be chargeable under section 599. No deduction can be made under PSI17.2.18 because the largest amount otherwise receivable in commutation of pension would be nil.