RPSM09105120 - Technical Pages:
Member benefits: Lump sums: Winding-up lump sum: Measure of
triviality
Measure of triviality
| [Para 10(2), 12(2) and (3), Sch 29] |
The maximum amount that can be treated as a
winding up lump sum is an amount equal to 1% of
the
standard lifetime allowance for the tax year in
which the payment is made.
However, this limit is only by reference to the lump sum
payment being made under the scheme. There is no aggregation with
benefits held in other schemes, either crystallised or still
accruing.
Where a payment is made which exceeds this limit the excess
will not be a winding-up lump sum. Assuming the excess payment is
not any other authorised member payment (including a
lifetime allowance excess lump sum), it will be an
unauthorised member payment.
