Source: http://www.legislation.gov.uk/ukpga/2015/11/schedule/4/data.xht?view=snippet&wrap=true
Timestamp: 2019-06-19 22:28:17
Document Index: 8890509

Matched Legal Cases: ['ART 1', 'art 4', 'art 2', 'ART 2', 'art 9', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 9', 'art 9', 'art 9', 'art 9', 'art 9', 'art 9']

Finance Act 2015 (c. 11) xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"
SCHEDULE 4E+W+S+N.I.Pension flexibility: annuities etc
PART 1 E+W+S+N.I.Death benefits for nominees, successors and dependants
1Part 4 of FA 2004 is amended as follows.
Nominees' annuities and successors' annuities to be authorised paymentsE+W+S+N.I.
2(1)Section 167(1) (the pension death benefit rules) is amended as follows.E+W+S+N.I.
(2)In pension death benefit rule 3A (payments that may, by way of exception, be made to a nominee) after “other than” insert “a nominees' annuity in respect of a money purchase arrangement or”.
(3)In pension death benefit rule 3B (payments that may, by way of exception, be made to a successor) after “other than” insert “a successors' annuity in respect of a money purchase arrangement or”.
Nominees' annuities and successors' annuities: definitionsE+W+S+N.I.
3(1)Part 2 of Schedule 28 (interpretation of the pension death benefit rules) is amended as follows.E+W+S+N.I.
(2)After paragraph 27A insert—
“Nominees' annuityE+W+S+N.I.
27AA(1)For the purposes of this Part an annuity payable to a nominee is a nominees' annuity if—
(i)it is purchased together with a lifetime annuity payable to the member and the member becomes entitled to that lifetime annuity on or after 6 April 2015, or
(ii)it is purchased after the member's death, the member dies on or after 3 December 2014 and the nominee becomes entitled to the annuity on or after 6 April 2015,
(b)it is payable by an insurance company, and
(c)it is payable until the nominee's death or until the earliest of the nominee's marrying, entering into a civil partnership or dying.
(2)For the purposes of sub-paragraph (1)(a) a nominees' annuity is purchased together with a lifetime annuity if the nominees' annuity is related to the lifetime annuity.
(3)The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision in relation to cases in which a nominees' annuity payable to a person (“the original nominees' annuity”) ceases to be payable and in consequence of that—
(a)sums or assets (or both) are transferred from the insurance company to another insurance company and are applied—
(i)towards the provision of another nominees' annuity (a “new nominees' annuity”) by the other insurance company, or
(ii)otherwise, or
(b)sums or assets are transferred to the relevant registered pension scheme.
(4)The regulations may provide that—
(a)in a case where a new nominees' annuity becomes payable, the new nominees' annuity is to be treated, to such extent as is prescribed by the regulations and for such of the purposes of this Part as are so prescribed, as if it were the original nominees' annuity, and
(b)in any other case, the relevant registered pension scheme is to be treated as making an unauthorised payment in respect of the member of an amount equal to the aggregate of the sums, and the market value of the assets, transferred.
(5)For the purposes of sub-paragraphs (3) and (4) a registered pension scheme is the relevant registered pension scheme if the original nominees' annuity was acquired using sums or assets held for the purposes of the pension scheme.”
(3)After paragraph 27F insert—
“Successors' annuityE+W+S+N.I.
27FA(1)For the purposes of this Part an annuity payable to a successor is a successors' annuity if—
(a)the successor becomes entitled to it on or after 6 April 2015,
(b)it is payable by an insurance company,
(c)it is payable until the successor's death or until the earliest of the successor's marrying, entering into a civil partnership or dying,
(d)it is purchased after the death of a dependant, nominee or successor of the member (“the beneficiary”),
(e)it is purchased using undrawn funds, and
(f)the beneficiary dies on or after 3 December 2014.
(2)For the purposes of sub-paragraph (1)(e), sums or assets held for the purposes of an arrangement after the beneficiary's death are undrawn funds if—
(a)immediately before the beneficiary's death, they were held for the purposes of the arrangement and, as the case may be, represented (alone or with other sums or assets) the beneficiary's—
(i)dependant's flexi-access drawdown fund,
(ii)dependant's drawdown pension fund,
(iii)nominee's flexi-access drawdown fund, or
(iv)successor's flexi-access drawdown fund,
in respect of the arrangement, or
(b)they arise, or (directly or indirectly) derive, from undrawn funds under paragraph (a) or from sums or assets which so arise or derive.
(3)The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision in relation to cases in which a successors' annuity payable to a person (“the original successors' annuity”) ceases to be payable and in consequence of that—
(i)towards the provision of another successors' annuity (a “new successors' annuity”) by the other insurance company, or
(a)in a case where a new successors' annuity becomes payable, the new successors' annuity is to be treated, to such extent as is prescribed by the regulations and for such of the purposes of this Part as are so prescribed, as if it were the original successors' annuity, and
(5)For the purposes of sub-paragraphs (3) and (4) a registered pension scheme is the relevant registered pension scheme if the original successors' annuity was acquired using sums or assets held for the purposes of the pension scheme.”
(4)Regulations made before 25 December 2015 under the paragraph 27AA or 27FA inserted by this paragraph may, for cases where the transfer concerned takes place on or after 6 April 2015, include provision having effect in relation to times before the regulations are made.
Dependants' and nominees' annuities: testing against deceased member's lifetime allowanceE+W+S+N.I.
4(1)In section 216(1) (benefit crystallisation events and amounts crystallised) the table is amended as follows.E+W+S+N.I.
(2)In the second column of the entry relating to benefit crystallisation event 4, after “any related dependants' annuity” insert “and any related nominees' annuity”.
(3)After the entry relating to benefit crystallisation event 5C insert—
“5D. A person becoming entitled, on or after 6 April 2015 but before the end of the relevant two-year period, to a dependants' annuity or nominees' annuity in respect of the individual if—
the annuity is purchased using (whether or not exclusively) relevant unused uncrystallised funds, and
the individual died on or after 3 December 2014
the amount of such of the sums, and
the market value of such of the assets,
applied to purchase the annuity as are relevant unused uncrystallised funds”
5(1)Section 217 (persons liable to lifetime allowance charge) is amended as follows.E+W+S+N.I.
(2)In subsection (2A) (cases where dependant or nominee liable) after “event 5C,” insert “ or by reason of a person becoming entitled to an annuity as mentioned in the description of benefit crystallisation event 5D, ”.
(3)In subsection (4A) (events 5C and 7 are “relevant post-death” events) after “benefit crystallisation event 5C” insert “ , 5D ”.
6In section 219(7A) (events 5C and 7 are “relevant post-death” events) after “benefit crystallisation event 5C” insert “ , 5D ”.
7In Schedule 32 (supplementary provisions about benefit crystallisation events)—
(a)in paragraph 1 (meaning of “the relevant pension schemes”: in certain cases means schemes of which the individual was a member immediately before death) after “5C” insert “ or 5D ”,
(b)in paragraph 4(1) (further provision about benefit crystallisation event 4) for the words from “if” to “purchased” substitute “if—
(a)the lifetime annuity or a related dependants' annuity or a related nominees' annuity is, or
(b)the lifetime annuity and a related dependants' annuity are, or
(c)the lifetime annuity and a related nominees' annuity are, or
(d)a related dependants' annuity and a related nominees' annuity are, or
(e)the lifetime annuity and a related dependants' annuity and a related nominees' annuity are,
purchased ”,
(c)in paragraph 14B (event 5C: meaning of “relevant two-year period”), and in the italic heading before that paragraph, for “event 5C” substitute “ events 5C and 5D ”, and
(d)in paragraph 14C(1) (event 5C: meaning of “relevant unused uncrystallised funds”), and in the italic heading before paragraph 14C, for “event 5C” substitute “ events 5C and 5D ”.
Minor and consequential amendmentsE+W+S+N.I.
8In section 172(6A)(b) (“benefit” in section 172 includes rights to payments under certain annuities) after “lifetime annuity or dependants' annuity” insert “, or nominees' annuity or successors' annuity,”.
9(1)Section 172A (surrenders of benefits and rights) is amended as follows.E+W+S+N.I.
(2)In subsection (1)(aa) (surrender of rights to payments under certain annuities triggers operation of subsection (2)) after “lifetime annuity or dependants' annuity” insert “, or nominees' annuity or successors' annuity,”.
(3)In subsection (9A)(b) (references to benefits include references to rights to payments under certain annuities) after “lifetime annuity or dependants' annuity” insert “, or nominees' annuity or successors' annuity,”.
10(1)Section 172B (increase of rights of connected person on death) is amended as follows.E+W+S+N.I.
(2)In subsection (2)(aa) (relevant member includes person who has rights to payments under certain annuities) after “lifetime annuity or dependants' annuity” insert “, or nominees' annuity or successors' annuity,”.
(3)In subsection (7A) (section does not apply to certain increases in rights) after “dependants' annuity”, in both places, insert “, nominees' annuity, successors' annuity”.
(4)In subsection (7B)(b) (“benefit” in section 172B includes rights to payments under certain annuities) after “lifetime annuity or dependants' annuity” insert “, or nominees' annuity or successors' annuity,”.
11In section 273B(1) (power of trustees or managers to make certain payments) after paragraph (f) insert—
“(fa)paid to purchase a nominees' annuity,
(fb)paid to purchase a successors' annuity,”.
12In section 280(2) (index of defined expressions) at the appropriate places insert—
“nominees' annuity paragraph 27AA of Schedule 28””
“related nominees' annuity paragraph 3(4B) of Schedule 29”
“successors' annuity paragraph 27FA of Schedule 28”
13(1)Schedule 28 (interpretation of the pension rules and the pension death benefit rules) is amended as follows.E+W+S+N.I.
(2)In paragraph 3(2B)(a) (power to make regulations about cases where lifetime annuity ceases to be payable by insurance company) after “dependants' annuity” insert “, nominees' annuity”.
(3)In paragraph 6(1B)(a) (power to make regulations about cases where short-term annuity ceases to be payable by insurance company) after “dependants' annuity” insert “, nominees' annuity”.
(4)In paragraph 27E(3) (meaning of “unused drawdown funds”)—
(a)in paragraph (b), for “derive.” substitute “ derive, ”, and
(b)after paragraph (b) (but not as part of it) insert—
“and since the member's death they have not been designated as available for the payment of dependants' drawdown pension, not been designated as available for the payment of nominees' drawdown pension, not been applied towards the provision of a dependants' annuity, not been applied towards the provision of a nominees' annuity and not been applied towards the provision of a dependants' scheme pension.”
(5)In paragraph 27E(4)(b) and (5) (meaning of “unused uncrystallised funds”) after “not been applied towards the provision of a dependants' annuity” insert “, not been applied towards the provision of a nominees' annuity”.
(6)In paragraph 27K(3) (meaning of “unused drawdown funds of the beneficiary's”)—
(a)in paragraph (b) for “derive.” substitute “ derive, ”, and
“and since the beneficiary's death they have not been designated as available for the payment of successors' drawdown pension and not been applied towards the provision of a successors' annuity.”
14(1)Paragraph 3 of Schedule 29 (interpretation of the lump sum rule: meaning of “the applicable amount”) is amended as follows.E+W+S+N.I.
(2)In sub-paragraph (4) (amount applied to purchase certain annuities) after “any related dependants' annuity” insert “and any related nominees' annuity”.
(3)After sub-paragraph (4A) (when a dependants' annuity is related to a lifetime annuity) insert—
“(4B)For the purposes of this Part a nominees' annuity is related to a lifetime annuity payable to a member of a registered pension scheme—
(a)if they are purchased either in the form of a joint life annuity or separately in circumstances in which the day on which the one is purchased is no earlier than seven days before, and no later than seven days after, the day on which the other is purchased, and
(b)the nominees' annuity will be payable to a nominee of the member.”
(4)In sub-paragraph (5) (deductions in calculating applicable amount) after “any related dependants' annuity”, in both places, insert “or any related nominees' annuity”.
15In paragraph 15(2)(a) of Schedule 29 (uncrystallised funds lump sum death benefit is sum paid in respect of funds not spent on certain annuities and other pensions) after “lifetime annuity,” insert “a nominees' annuity,”.
16In consequence of paragraph 7(b) of this Schedule, omit paragraph 32 of Schedule 10 to FA 2005.
PART 2 E+W+S+N.I.Income tax on beneficiaries' annuities etc
Exemption in certain cases for annuities for dependants, nominees and successorsE+W+S+N.I.
17(1)In Chapter 17 of Part 9 of ITEPA 2003 (tax on pension income: exemptions) after section 646A insert—E+W+S+N.I.
“646BRegistered schemes: beneficiaries' annuities from unused funds
(1)The charge to tax under this Part does not apply to a dependants' annuity, or nominees' annuity, payable to a person if—
(a)it is paid in respect of a deceased member of a registered pension scheme who had not reached the age of 75 at the date of the member's death,
(ii)the annuity was purchased using sums or assets transferred to an insurance company by another insurance company in consequence of an annuity that was payable to the person by that other company, and was a dependants' annuity or nominees' annuity (as the case may be) purchased as mentioned in sub-paragraph (i) or this sub-paragraph, ceasing to be payable,
(i)the day on which the scheme administrator first knew of the member's death, and
(2)The charge to tax under this Part does not apply to a successor's annuity payable to a person if—
(c)the beneficiary had not reached the age of 75 at the date of the beneficiary's death,
(ii)the annuity was purchased using sums or assets transferred to an insurance company by another insurance company in consequence of an annuity that was payable to the person by that other company, and was a successors' annuity purchased as mentioned in sub-paragraph (i) or this sub-paragraph, ceasing to be payable,
(3)The charge to tax under this Part does not apply to a dependants' annuity or nominees' annuity payable to a person if—
(ii)was purchased using sums or assets transferred to an insurance company by another insurance company in consequence of an annuity that was payable to the person by that other company, and was a dependants' annuity or nominees' annuity (as the case may be) purchased as mentioned in sub-paragraph (i) or this sub-paragraph, ceasing to be payable,
(i)a member of a registered pension scheme was entitled to be paid the annuity immediately before the member's death, or
(c)the member had not reached the age of 75 at the date of the member's death,
(7)For the purposes of subsection (3)(c), a dependants' annuity or nominees' annuity is purchased together with a lifetime annuity if the dependants' annuity or nominees' annuity (as the case may be) is related to the lifetime annuity, and paragraph 3(4A) and (4B) of Schedule 29 to FA 2004 (meaning of “related”) apply for the purposes of this subsection.
646CRegistered schemes: beneficiaries' annuities from drawdown funds
(1)The charge to tax under this Part does not apply to a dependants' short-term annuity, nominees' short-term annuity, dependants' annuity or nominees' annuity paid to a person if—
(c)the annuity was purchased using sums or assets out of the person's—
(i)dependant's drawdown pension fund,
(ii)dependant's flexi-access drawdown fund, or
(iii)nominee's flexi-access drawdown fund,
(2)The charge to tax under this Part does not apply to a successors' short-term annuity, or successors' annuity, paid to a person if—
(a)it is paid in respect of a deceased beneficiary of a deceased member of a registered pension scheme where the beneficiary had not reached the age of 75 at the date of the beneficiary's death,
(c)the annuity was purchased using sums or assets out of the person's successor's flexi-access drawdown fund in respect of a money purchase arrangement under a registered pension scheme,
(4)Subsection (1) does not exempt payments on or after 6 April 2015 to a person of a dependants' short-term annuity, or dependants' annuity, payable in respect of a deceased member of a registered pension scheme and purchased using sums or assets out of the person's dependant's drawdown pension fund in respect of a money purchase arrangement under a registered pension scheme (“the drawdown fund”) if before 6 April 2015—
(b)any payment was made of any other dependants' short-term annuity, or dependants' annuity, purchased using sums or assets out of—
(c)any payment of dependants' income withdrawal was made from—
(5)Subsection (1) does not exempt payments to a person of a dependants' short-term annuity, or dependants' annuity, payable in respect of a deceased member of a registered pension scheme and purchased using sums or assets out of the person's dependant's flexi-access drawdown fund in respect of a money purchase arrangement under a registered pension scheme (“the new fund”) if—
(i)any payment of dependants' income withdrawal in respect of the deceased member was made to the person from, or
(ii)any payment in respect of the deceased member was made to the person of a dependants' short-term annuity, or dependants' annuity, purchased using sums or assets out of,
the person's dependant's drawdown pension fund in respect of a money purchase arrangement under a registered pension scheme, and
(a)are designated on or after 6 April 2015 as available for the payment of dependants' drawdown pension or nominees' drawdown pension, and
(b)as a result of the designation make up (to any extent) a person's dependant's flexi-access drawdown fund or nominee's flexi-access drawdown fund in respect of a money purchase arrangement under a registered pension scheme, but
subsection (1) does not exempt payments to the person of a dependants' short-term annuity, nominees' short-term annuity, dependants' annuity or nominees' annuity if any of the sums or assets used to purchase the annuity represent, at the time of the purchase, the whole or any part of those relevant unused uncrystallised funds.
(a)the day on which the scheme administrator first knew of the individual's death, and
(b)the member had not reached the age of 75 at the date of the member's death.
646DNon-registered schemes: beneficiaries' annuities from unused funds
(1)The charge to tax under this Part does not apply to an annuity payable to a person if—
(a)it is paid in respect of a deceased member of an overseas pension scheme, or relevant non-UK scheme, who had not reached the age of 75 at the date of the member's death,
(b)it would, if the scheme were a registered pension scheme and if “insurance company” in Part 4 of FA 2004 had the meaning given by subsection (8), be a dependants' annuity or nominees' annuity,
(c)that would have been a dependants' annuity or nominees' annuity (as the case may be) if the scheme had been a registered pension scheme,
(c)it would, if the scheme were a registered pension scheme and if “insurance company” in Part 4 of FA 2004 had the meaning given by subsection (8), be a successors' annuity,
(d)the beneficiary had not reached the age of 75 at the date of the beneficiary's death,
(c)that would have been a successors' annuity if the scheme had been a registered pension scheme and if “insurance company” in Part 4 of FA 2004 had the meaning given by subsection (8),
(b)it would, if the scheme were a registered pension scheme and if “insurance company” in Part 4 of FA 2004 had the meaning given by subsection (8), be a dependants' annuity payable to a dependant of the member or a nominees' annuity payable to a nominee of the member,
(b)that would, if the scheme were a registered pension scheme and if “insurance company” in Part 4 of FA 2004 had the meaning given by subsection (8), have been a dependants' annuity or nominees' annuity (as the case may be) purchased as mentioned in sub-paragraph (i) or this sub-paragraph,
(i)a member of an overseas pension scheme, or relevant non-UK scheme, was entitled to be paid the annuity immediately before the member's death, or
646ENon-registered schemes: beneficiaries' annuities from drawdown funds
(1)The charge to tax under this Part does not apply to an annuity paid to a person if—
(a)it is paid in respect of a deceased member of an overseas pension scheme, or a relevant non-UK scheme, who had not reached the age of 75 at the date of the member's death,
(c)the annuity was purchased using sums or assets held for the purposes of a money purchase arrangement under an overseas pension scheme or relevant non-UK scheme, and those sums or assets would if that scheme were a registered pension scheme form the whole or part of the person's—
(d)the annuity would, if the scheme were a registered pension scheme and if “insurance company” in Part 4 of FA 2004 had the meaning given by section 646D(8), be a dependants' short-term annuity or dependants' annuity or (as the case may be) a nominees' short-term annuity or nominees' annuity, and
(a)it is paid in respect of a deceased individual (“the beneficiary”) who had not reached the age of 75 at the date of the beneficiary's death,
(d)the annuity was purchased using sums or assets out of a fund held for the purposes of a money purchase arrangement under an overseas pension scheme or relevant non-UK scheme and would, if that scheme were a registered pension scheme and if “insurance company” in Part 4 of FA 2004 had the meaning given by section 646D(8), be a successors' short-term annuity, or successors' annuity, purchased using sums or assets out of the person's successor's flexi-access drawdown fund in respect of the arrangement, and
(b)the annuity would, if that scheme were a registered pension scheme and if “insurance company” in Part 4 of FA 2004 had the meaning given by section 646D(8), be a dependants' short-term annuity or dependants' annuity,
(c)the annuity was purchased using sums or assets out of a fund that would, if that scheme were a registered pension scheme, be the person's dependant's drawdown pension fund in respect of the arrangement (“the drawdown fund”), and
(iii)any payment was made to the person out of the drawdown fund, or out of any fund represented (to any extent) by the drawdown fund, of any pension that would be dependants' income withdrawal if the fund concerned were held for the purposes of a registered pension scheme.
(a)the annuity was purchased using sums or assets held for the purposes of a money purchase arrangement under an overseas pension scheme or relevant non-UK scheme and would, if that scheme were a registered pension scheme and “insurance company” in Part 4 of FA 2004 had the meaning given by section 646D(8), be a dependants' short-term annuity or dependants' annuity,
(b)the annuity was purchased using sums or assets out of a fund (“the new fund”) that would, if that scheme were a registered pension scheme, be the person's dependant's flexi-access drawdown fund in respect of the arrangement,
(i)any payment of pension in respect of the deceased member was made to the person from a fund held for the purposes of a money purchase arrangement under an overseas pension scheme, or relevant non-UK scheme, that would be a payment of dependants' income withdrawal from the person's dependant's drawdown pension fund in respect of the arrangement if the scheme were a registered pension scheme, or
(ii)any payment in respect of the deceased member was made to the person of an annuity purchased using sums or assets out of a fund held for the purposes of a money purchase arrangement under an overseas pension scheme, or relevant non-UK scheme, that would be a payment of a dependants' short-term annuity, or dependants' annuity, purchased using sums or assets out of the person's dependant's drawdown pension fund in respect of the arrangement if the scheme were a registered pension scheme, and
646FInterpretation of sections 646B to 646E
In sections 646B to 646E, an expression listed in the first column of the table has the meaning given by the provision of FA 2004 listed against that expression in the second column of the table.
Provision of FA 2004
dependant Schedule 28, paragraph 15
dependants' annuity Schedule 28, paragraph 17
dependant's drawdown pension fund Schedule 28, paragraph 22
dependant's flexi-access drawdown fund Schedule 28, paragraph 22A
dependants' income withdrawal Schedule 28, paragraph 21
dependants' short-term annuity Schedule 28, paragraph 20
insurance company (in sections 646B and 646C) section 275
lifetime annuity Schedule 28, paragraph 3
money purchase arrangement section 152
nominee Schedule 28, paragraph 27A
nominees' annuity Schedule 28, paragraph 27AA
nominee's flexi-access drawdown fund Schedule 28, paragraph 27E
nominees' short-term annuity Schedule 28, paragraph 27C
overseas pension scheme section 150(1) and (7)
relevant non-UK scheme Schedule 34, paragraph 1(5)
successor Schedule 28, paragraph 27F
successors' annuity Schedule 28, paragraph 27FA
successor's flexi-access drawdown fund Schedule 28, paragraph 27K
successors' short-term annuity Schedule 28, paragraph 27H”.
Exemption from tax under Part 9 of ITEPA 2003 not to give rise to tax under other provisionsE+W+S+N.I.
18In section 393B(2)(a) of ITEPA 2003 (tax on benefits under employer-financed retirement benefit schemes: “relevant benefits” do not include benefits charged to tax under Part 9) after “charged to tax under Part 9 (pension income)” insert “ , or that would be charged to tax under that Part but for section 573(2A) or (2B), 646D or 646E ”.
Annuity for dependant purchased before 6 April 2006 jointly with annuity for memberE+W+S+N.I.
19In Schedule 36 to FA 2004 (transitional provision etc in relation to pre-6 April 2006 pensions) after paragraph 45 insert—
“Taxation of certain annuities for dependants purchased pre-commencementE+W+S+N.I.
45A(1)The charge to tax under Part 9 of ITEPA 2003 (taxation of pension income) does not apply to an annuity payable to a person (“the dependant”) if—
(h)that annuity payable to the member fulfilled the transitional conditions at all times in the period beginning with 6 April 2006 and ending with the member's death.
20In section 573 of ITEPA 2003 (foreign pensions to which other provisions of Part 9 of ITEPA 2003 do not apply) after subsection (2D) insert—
“(2E)Chapter 17 of this Part provides exemptions for certain annuities (see sections 646D and 646E: certain beneficiaries' annuities purchased out of unused or drawdown funds).
21In Chapter 10 of Part 9 of ITEPA 2003 (other employment-related annuities) after section 611 insert—
“611AExemptions from sections 609 to 611
(1)Chapter 17 of this Part provides exemptions for certain annuities (see sections 646B to 646E: certain beneficiaries' annuities purchased out of unused or drawdown funds).
22In section 579A of ITEPA 2003 (section applies to pensions under registered pension schemes, with exceptions) after subsection (2) insert—
“(3)Chapter 17 of this Part provides exemptions for certain annuities (see sections 646B and 646C: certain beneficiaries' annuities purchased out of unused or drawdown funds).”
23(1)For section 579CZA(5)(b) of ITEPA 2003 (tax exemption for dependants' income withdrawal overridden where any paid before 6 April 2015) substitute—E+W+S+N.I.
(ii)any payment in respect of the deceased member was made to the person of a dependants' short-term annuity purchased using sums or assets out of,
the person's dependant's drawdown pension fund in respect of a money purchase arrangement under a registered pension scheme, and”.