RPSM15106020 - Technical Pages: Special annual allowance: Becoming entitled to benefits or member dies: Serious ill-health lump sum or member’s death

This guidance only applies for the 2009-10 and 2010-11 tax years.

Test against special annual allowance where benefits taken or member dies: Serious ill-health lump sum or member’s death

In the event of the

• payment of a serious ill-health lump sum (see RPSM09104600) under a defined benefits arrangement (where the ill-health condition, see RPSM08100070, does not happen to be met which would prevent the possible application of Condition B as set out in RPSM15106010), or
• death of a member, and
• Condition A (see RPSM15106010) does not apply in either case

the pension input amount in respect of the arrangement for the tax year concerned will have to be taken into account for the purpose of the special annual allowance.

This is in contrast with the annual allowance. There would be no pension input amount for the tax year concerned for the purpose of the annual allowance when all benefits are taken under an arrangement as a serious ill-health lump sum or in the event of the member’s death.