RPSM03105530 - Technical Pages: Protecting pension rights from tax charges: Lump sums: Scheme specific protection: Valuation of a single arrangement
Valuing lump sum benefits exceeding 25%: single arrangement
Where the individual has a single arrangement under a sole pension scheme in respect of the employment VULSR and VUR are as follows.
VULSR
|
[Paras 32(1) & 25(5) Sch 36] [Paras 32(2, 5 & 7) & 26 Sch 36] |
VULSR is the lower of the value of the lump sum rights determined under paragraphs 25(5) and 26 Schedule 36 FA 2004.
The value under paragraph 25(5) is the value of the entitlement to uncrystallised lump sum rights under the arrangement on 5 April 2006- see RPSM03105070.
The value under paragraph 26 is the HMRC maximum permitted lump sum - see RPSM03105080. So the value under paragraph 26 will only apply where the value of the lump sum rights under the arrangement is more than the maximum permitted lump sum under HMRC limits on 5 April 2006.
VUR
|
[Paras 33(1) & 8(5) Sch 36] [Paras 33(2, 5 & 7) & 9(3) Sch 36] |
VUR is the lower of the value calculated under paragraphs 8(5) and 9(3) Schedule 36 FA 2004.
The value under paragraph 8(5) is the entitlement to uncrystallised pension rights under the arrangement on 5 April 2006. RPSM03101050 to RPSM03101100 explain how this value is obtained. (The valuation method will depend on the type of the arrangement.)
The value under paragraph 9(3) is the HMRC maximum permitted pension. RPSM03101530 to RPSM03101610 explain how this value is obtained.
The value under paragraph 9(3) will only apply where the entitlement to pension rights under the arrangement is more than the maximum permitted pension under HMRC limits.
|
Glossary (RPSM20000000) |
