Finance Act 2015

Minor and consequential amendmentsU.K.

8U.K.In 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.U.K.

(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.U.K.

(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,”.

11U.K.In 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,”.

12U.K.In section 280(2) (index of defined expressions) at the appropriate places insert—

13(1)Schedule 28 (interpretation of the pension rules and the pension death benefit rules) is amended as follows.U.K.

(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

(b)after paragraph (b) (but not as part of it) insert—

“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.U.K.

(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”.

15U.K.In 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,”.