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STATUTORY INSTRUMENTS
2026 No. 698
INCOME TAX
The Pensions (Abolition of Lifetime
Allowance Charge etc) Regulations 2026
Made - - - - 24th June 2026
Coming into force - - 25th June 2026
The Treasury make these Regulations in exercise of the powers conferred by paragraph 134 of
Schedule 9 to the Finance Act 2024(1).
In accordance with paragraph 134(3) of Schedule 9 to that Act, a draft of the instrument was laid
before, and approved by a resolution of, the House of Commons.
Part 1
Introductory
Citation, commencement and effect
1.—(1) These Regulations may be cited as the Pensions (Abolition of Lifetime Allowance Charge
etc) Regulations 2026.
(2) Subject to paragraphs (4) to (6), the amendments made by these Regulations have effect for
the tax year 2024-25 and subsequent tax years.
(3) The amendments made by regulations 2(6) and 14(4) to (7) have effect in relation to payments
made on or after 29th June 2026.
(4) The amendments made by regulation 4(2) have effect in relation to lump sums paid on or
after 29th June 2026.
(5) The amendments made by regulation 12 have effect in relation to transfers made on or after
29th June 2026.
(6) These Regulations come into force on the day after the day on which they are made.
(1) 2024 c. 3. In these footnotes, a reference to “FA” followed by a year is to a Finance Act of that year and a reference to “FA
(No. 2)” followed by a year is to Finance (No. 2) Act of that year. Paragraph 134 of Schedule 9 was amended by section 59
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Part 2
Amendments of primary legislation
ITEPA 2003
2.—(1) ITEPA 2003(2) is amended as follows.
(2) In section 574A (“pension”: relevant lump sums), in subsection (3), in Step 3, in paragraph (b),
at the end insert “and all of the member’s lump sum and death benefit allowance is available”.
(3) In section 637Q (availability of individual’s lump sum allowance), after subsection (6)
insert—
“(6A) Where more than one relevant benefit crystallisation event occurs in relation to
an individual on the same day, it is for the individual to decide the order in which they are
to be treated as occurring for the purposes of this section.”
(4) In section 637S (availability of individual’s lump sum and death benefit allowance), after
subsection (7) insert—
“(7A) The individual’s decision under subsection (7), so far as it relates to events that are
relevant benefit crystallisation events for the purposes of section 637Q, must be consistent
with the individual’s decision under subsection (6A) of that section.”
(5) In section 637T (section 637S: multiple lump sum death benefits paid)—
(a) in the heading, for “Section 637S:” substitute “Availability of individual’s lump sum and
death benefit allowance where”;
(b) for subsection (3) substitute—
“(3) The amount of the individual’s lump sum and death benefit allowance that is
available on the occurrence of any of the relevant benefit crystallisation events mentioned
in subsection (1) is the relevant proportion of the undivided available amount.
(3A) In subsection (3), “the undivided available amount” means the amount of
the individual’s lump sum and death benefit allowance that would, apart from that
subsection (but after taking into account subsection (2)), be available on the occurrence
of the relevant benefit crystallisation event in question.”
(6) After section 637T insert—
“637U Availability of individual’s allowances where lump sums or lump sum death
benefits already paid by non-UK schemes
(1) Subsection (2) applies where—
(a) a payment within paragraph 1(1)(a) or (b) of Schedule 34 to FA 2004 (non-UK
schemes: application of certain charges and protections etc)(3) is made (or treated
by Part 4 of that Act as made) to or in respect of an individual, and
(b) the payment, or any part of it, is treated by virtue of that Schedule as—
(i)a pension commencement lump sum, or
(2) 2003 c. 1. Section 38 of FA 2024 provides that “ITEPA 2003” is a reference to the Income Tax (Earnings and Pensions) Act
2003. In these footnotes, a reference to “ITEPA 2003” is to the Income Tax (Earnings and Pensions) Act 2003. Section 574A
of ITEPA 2003 was inserted by paragraph 10 of Schedule 3 to FA 2017 (c. 10) and was amended by paragraph 61 of Schedule
9 to FA 2024. Sections 637Q and 637S of ITEPA 2003 were inserted by paragraph 41 of Schedule 9 to FA 2024 and were
amended by S.I. 2024/1012. Section 637T of ITEPA 2003 was inserted by S.I. 2024/1012 and was amended by section 70(5)
of FA 2026 (c. 11). “Lump sum and death benefit allowance” is defined in section 637R of ITEPA 2003 and “relevant benefit
crystallisation event” is defined in section 637Q of that Act (both were inserted by paragraph 61 of Schedule 9 to FA 2024).
(3) 2004 c. 12.
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(ii)an uncrystallised funds pension lump sum,
for the purposes of the member payment charges.
(2) In determining under section 637Q (availability of individual’s lump sum allowance)
the availability of the individual’s lump sum allowance on the occurrence of any subsequent
relevant benefit crystallisation event, the payment, or part of the payment, mentioned in
subsection (1)(b) is to be treated as a relevant lump sum within the meaning of that section.
(3) Subsection (4) applies where—
(a) a payment within paragraph 1(1)(a) or (b) of Schedule 34 to FA 2004 (non-UK
schemes: application of certain charges and protections etc) is made (or treated by
Part 4 of that Act as made) to or in respect of an individual, and
(b) the payment, or any part of it, is treated by virtue of that Schedule as—
(i)a pension commencement lump sum,
(ii)a serious ill-health lump sum,
(iii)an uncrystallised funds pension lump sum, or
(iv)any authorised lump sum death benefit, other than a charity lump sum death
benefit or a trivial commutation lump sum death benefit,
for the purposes of the member payment charges.
(4) In determining under section 637S (availability of individual’s lump sum and death
benefit allowance) the availability of the individual’s lump sum and death benefit allowance
on the occurrence of any subsequent relevant benefit crystallisation event, the payment, or part
of the payment, mentioned in subsection (3)(b) is to be treated as—
(a) in a case within subsection (3)(b)(i) to (iii), a relevant lump sum within the meaning
of that section;
(b) in a case within subsection (3)(b)(iv), a relevant lump sum death benefit within the
meaning of that section.”
Section 255 of FA 2004
3. In section 255 of FA 2004 (assessments under Part 4)(4), in subsection (1)(h), after sub-
paragraph (vi) insert—
“(vii)section 637M(2) (flexi-access drawdown lump sum death benefits)(5).”
Schedule 29 to FA 2004
4.—(1) Schedule 29 to FA 2004 (registered pension schemes: authorised lump sums -
supplementary)(6) is amended as follows.
(2) In paragraph 8 (trivial commutation lump sum)—
(a) in sub-paragraph (1)(c), for “under a registered pension scheme” substitute “to which sub-
paragraph (3) applies”;
(b) at the end of sub-paragraph (1)(c) insert “, and
(4) 2004 c. 12. Section 38 of FA 2024 provides that a reference to FA followed by a year is a reference to a Finance Act of that
year. Section 255 was amended by paragraph 19 of Schedule 17 to FA 2011 (c. 11), paragraph 16 of Schedule 4 to FA 2017
(c. 10), paragraph 7 of Schedule 9 to FA 2024 and by S.I. 2024/1012.
(5) Section 637M of ITEPA 2003 was inserted by paragraph 41 of Schedule 9 to FA 2024. It was amended by S.I. 2024/1012.
(6) Paragraph 8 of Schedule 29 to FA 2004 was substituted by S.I. 2024/1167. Paragraph 12A was inserted by paragraph 36 of
Schedule 9 to FA 2024. Paragraph 16 was amended by paragraph 36 of Schedule 16 to FA 2011 and by S.I. 2024/1012.
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(d) if, at any time in the period beginning with 6 April 2006 and ending with
the nominated date, there has been a transfer of sums or assets held for the
purposes of, or representing accrued rights under, a registered pension scheme
so as to become held for the purposes of or to represent rights under a
qualifying recognised overseas pension scheme in connection with the member’s
membership of that pension scheme, the aggregate of the amount of any sums
transferred and the market value of any assets transferred(7).”;
(c) after sub-paragraph (2) insert—
“(3) This sub-paragraph applies to any lump sum paid under a registered pension
scheme that is not any of the following—
(a) a short service refund lump sum;
(b) a refund of excess contributions lump sum;
(c) a trivial commutation lump sum;
(d) a winding-up lump sum.
(4) A reference in sub-paragraph (3)(a) to (d) to a description of lump sum includes a
lump sum that is treated as a lump sum of that description for the purposes of ITEPA 2003
by virtue of section 164(1)(f) (power to prescribe authorised member payments)(8).”
(3) In paragraph 12A (meaning of references in Schedule 29 to amount of lump sum allowance
or lump sum and death benefit allowance that is “available”), after sub-paragraph (4) insert—
“(5) When making that assumption in relation to the reference in paragraph 2(c) (permitted
maximum for a pension commencement lump sum) any provision under which section 637R of
ITEPA 2003 (individual’s lump sum and death benefit allowance) is treated as specifying the
member’s enhanced lump sum and death benefit allowance (determined under paragraph 20H of
Schedule 36 to this Act)(9) is to be disregarded.”
(4) In paragraph 16 (annuity protection lump sum death benefit), in sub-paragraph (3), in the
definition of AC—
(a) in paragraph (a), for “and (4)” substitute “(disregarding paragraph 2D(4))”;
(b) in paragraph (b) for “and (4)” substitute “(disregarding paragraph 2B(4))”.
Schedule 36 to FA 2004
5.—(1) Schedule 36 to FA 2004 (transitional provision and savings)(10) is amended as follows.
(2) In the heading of Part 2, for “rights:” substitute “rights and”.
(3) In paragraph 18 (pre-commencement pension credits)—
(a) in sub-paragraph (2), omit paragraph (a) (including the “and” at the end);
(b) in sub-paragraph (8), in the definition of A, in paragraph (a), for “(see paragraph 6A(4))”
substitute “(as specified in that provision for the purposes of paragraph 20H)”;
(c) after that sub-paragraph insert—
(7) “Registered pension scheme” is defined in section 150(2) of FA 2004 and “qualified recognised overseas pension scheme is
defined in section 169(2) of that Act.
(8) Section 164 of FA 2004 was inserted by paragraph 1 of Schedule 29 to FA 2008 (c. 9). There are no relevant amending
instruments.
(9) Paragraph 20H of Schedule 36 was inserted by S.I. 2024/1012.
(10) Paragraph 18 of Schedule 36 to FA 2004 was substituted by paragraph 75 of Schedule 9 to FA 2024 (c. 3) and was amended by
S.I. 2024/1012. Paragraphs 20A, 20B, 20E were inserted by paragraph 78 of Schedule 9 to FA 2024 and were amended by S.I.
2024/1012. Paragraphs 20A and 20E were also amended by S.I. 2024/1167. Paragraph 20H was inserted by S.I. 2024/1012.
Paragraph 29 of Schedule 36 was substituted by paragraph 84 of Schedule 9 to FA 2024. Paragraph 34 was substituted by
S.I. 2024/1167. Paragraph 34A was inserted by S.I. 2024/1167.
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“(9) In this paragraph “relevant protection provision” has the meaning given in
paragraph 20H(3).”
(4) In paragraph 20A (pension credits from previously crystallised rights)—
(a) in sub-paragraph (9), in the definition of A, in paragraph (a), for “(see paragraph 6A(4))”
substitute “(as specified in that provision for the purposes of paragraph 20H)”;
(b) after sub-paragraph (10) insert—
“(11) In this paragraph “relevant protection provision” has the meaning given in
paragraph 20H(3).”
(5) In paragraph 20B (non-residence: general)—
(a) in sub-paragraph (9), in the definition of A, in paragraph (a), for “(see paragraph 6A(4))”
substitute “(as specified in that provision for the purposes of paragraph 20H)”;
(b) after that sub-paragraph insert—
“(10) In this paragraph “relevant protection provision” has the meaning given in
paragraph 20H(3).”
(6) In paragraph 20E (transfers from recognised overseas pension scheme: general)—
(a) in sub-paragraph (10), in the definition of A, at the end of paragraph (a) insert “(as specified
in that provision for the purposes of paragraph 20H)”;
(b) after sub-paragraph (11) insert—
“(12) In this paragraph “relevant protection provision” has the meaning given in
paragraph 20H(3).”
(7) Paragraph 29 (pre-commencement benefit rights: enhanced protection and lump sum
protection: applicable amount) is amended in accordance with sub-paragraphs (8) to (10).
(8) In sub-paragraph (3), in the modified paragraph 2B(2) of Schedule 29—
(a) omit “(subject to sub-paragraph (4))”;
(b) in the formula, omit “-E”;
(c) omit the definition of E.
(9) For sub-paragraph (4) substitute—
“(4) Paragraph 2C of that Schedule (meaning of “the applicable amount” where the relevant
pension is a defined benefits arrangement or a collective money purchase arrangement) applies as
if, for sub-paragraphs (2) to (4), there were substituted—
“(2) The applicable amount is (subject to sub-paragraph (3))—
where—
“A” is the value of the individual’s relevant uncrystallised lump sum rights on 5 April 2006,
calculated in accordance with paragraphs 25 and 26 of Schedule 36;
“B” is the value of the individual’s uncrystallised pension rights on 5 April 2006, calculated
in accordance with paragraphs 8 and 9 of that Schedule;
“C” is the pension commencement lump sum paid;
“D” is an amount equal to the value of the pension rights crystallised by reason of the individual
becoming entitled to the pension.
(3) For the purposes of sub-paragraph (2), any part of what would otherwise be C or D which
represents rights attributable to a disqualifying pension credit is to be disregarded.””
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(10) After sub-paragraph (5) insert—
“(6) The Commissioners for His Majesty’s Revenue and Customs may by regulations make
provision about how the value of pension rights crystallised by reason of an individual becoming
entitled to a pension is to be determined for the purposes of paragraph 2C(2) of Schedule 29, as
modified by sub-paragraph (4) of this paragraph.”
(11) In paragraph 34, in sub-paragraph (3), in the modified version of paragraph 2 of
Schedule 29—
(a) in sub-paragraph (1), in the definition of B, for “(6)” substitute “(7)”;
(b) in sub-paragraph (2), for the definition of F substitute—
““F” is—
(a) 1,073,100, or
(b) if a relevant protection provision applies in relation to the member, the
member’s lump sum and death benefit allowance (as determined in accordance
with that provision).”;
(c) in sub-paragraph (6)(c) for “collective money purchase scheme” substitute “collective
money purchase arrangement”(11);
(d) after sub-paragraph (6) insert—
“(7) The following provisions are “relevant protection provisions” for the purposes of
the definition of F in sub-paragraph (2)—
(a) paragraph 14 of Schedule 18 to FA 2011 (fixed protection)(12);
(b) paragraph 1 of Schedule 22 to FA 2013 (“fixed protection 2014”)(13);
(c) paragraph 1 of Schedule 6 to FA 2014 (“individual protection 2014”)(14);
(d) paragraph 1 of Schedule 4 to FA 2016 (“fixed protection 2016”)(15);
(e) paragraph 9 of that Schedule (“individual protection 2016”).”
(12) In paragraph 34A, in sub-paragraph (1)(b), in the modified version of section 637Q(6)(b)
of ITEPA 2003, for “sub-paragraph (3)” substitute “sub-paragraph (2)”.
ITA 2007
6. In section 30 of ITA 2007 (additional tax)(16), in subsection (1), omit the entry for section 214
of FA 2004(17).
Schedule 6 to FA 2014
7. In Schedule 6 to FA 2014 (transitional provision relating to new standard lifetime allowance
etc)(18), in paragraph 1 (“individual protection 2014”)—
(a) in sub-paragraph (2A), in the words before paragraph (a) omit “the lower of”;
(11) “Collective money purchase arrangement” is defined in section 152(3A) of FA 2004. Subsection (3A) was inserted by
paragraph 2 of Schedule 5 to FA 2021 (c. 26).
(12) 2011 c. 11. Paragraph 14 of Schedule 18 was amended by section 47 of FA 2013 (c. 29), section 23 of FA (No. 2) 2023 (c. 30),
paragraph 90 of Schedule 9 to FA 2024 and by S.I. 2013/1740 and 2024/1012.
(13) 2013 c. 29. Paragraph 1 of Schedule 22 was amended by section 23 of FA (No. 2) 2023, paragraph 91 of Schedule 9 to FA
2024 and by S.I. 2024/1012.
(14) 2014 c. 26. Paragraph 1 was amended by paragraph 92 of Schedule 9 to FA 2024 and by S.I. 2024/1012.
(15) 2016 c. 24. Paragraphs 1 and 9 of Schedule 4 were amended by S.I. 2024/1012.
(16) 2007 c. 3. Section 38 of FA 2024 defines “ITA 2007” as the Income Tax Act 2007. A number of amendments have been made
to section 30 of the Income Tax Act 2007 but none are relevant for the purposes of this amendment.
(17) Section 214 of FA 2004 was repealed by paragraph 3 of Schedule 9 to FA 2024 (c. 3).
(18) 2014 c. 26. Sub-paragraphs (2), (2A) and (2B) of paragraph 1 were substituted by S.I. 2024/1012. Section 44 of, and Schedule 6
to, FA 2014 make provision for a new standard lifetime allowance for the tax year 2014-15 and subsequent years.
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(b) in sub-paragraph (7), for “purpose of applying sub-paragraph (2)” substitute “purposes of
applying sub-paragraphs (2) to (2B)”.
Schedule 4 to FA 2016
8. In Schedule 4 to FA 2016 (pensions: lump sum allowance and lump sum and death benefit
allowance: transitional provision)(19), in paragraph 9 (“individual protection 2016”)—
(a) in sub-paragraph (2A), in the words before paragraph (a) omit “the lower of”;
(b) in sub-paragraph (7), for “purpose of applying sub-paragraph (2)” substitute “purposes of
applying sub-paragraphs (2) to (2B)”.
Schedule 9 to FA 2024
9.—(1) Part 6 of Schedule 9 to FA 2024 (pensions: transitional provision)(20) is amended as
follows.
(2) In paragraph 127A (availability of member’s overseas transfer allowance)—
(a) in sub-paragraph (1)—
(i)in paragraph (a) omit the “and” at the end;
(ii)at the end of paragraph (b) insert “, and
(c) at the time the transfer is made, the individual is not an individual
to whom paragraph 12 of Schedule 36 to FA 2004 applies (enhanced
protection)(21).”;
(b) in sub-paragraphs (2) and (3)(b) omit “adjusted”;
(c) for sub-paragraph (4) substitute—
“(4) S ub-paragraph (5) applies where the individual’s lifetime allowance previously-
used amount includes one or more amounts (“crystallised drawdown amounts”) that are
attributable to the occurrence, before 6 April 2024, of benefit crystallisation event 1
(designation of money purchase funds for drawdown).
(5) The individual’s lifetime allowance previously-used amount is to be reduced for
the purposes of sub-paragraphs (2) and (3) (but not below zero) by—
(a) if there is only one crystallised drawdown amount, the amount given by the
following formula in relation to it, or
(b) if there is more than one crystallised drawdown amount, the sum of the amounts
given by the following formula in relation to each of them.
(6) The formula is—
where—
“A” is the crystallised drawdown amount in question;
(19) 2016 c. 24. Sub-paragraphs (2), (2A) and (2B) of paragraph 9 were substituted by S.I. 2024/1012.
(20) 2024 c. 3. Paragraph 127A of Schedule 9 was inserted by S.I. 2024/356 and was amended by S.I. 2024/1012. Paragraph 127B
and sub-paragraph (4C) of paragraph 129 of Schedule 9 were inserted by S.I. 2024/1012.
(21) 2004 c. 12. Paragraph 12 was amended by paragraph 53 of Schedule 10 to FA 2005 (c. 7), paragraph 17 of Schedule 20 to
FA 2007 (c. 11), paragraph 432 of Schedule 1 to the Corporation Tax Act 2010 (c. 4), paragraph 59 of Schedule 26 to the
Equality Act 2010 (c. 15), section 23(2) of FA (No. 2) 2023 (c. 30) and by S.I. 2024/1012.
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“B” is the i`ndividual’s lifetime allowance on the occurrence of the benefit
crystallisation event to which the crystallised drawdown amount in question is
attributable(22).”
(3) In paragraph 127B (provision of information by individuals to certification administrators),
after sub-paragraph (8) insert—
“(8A) Sub-paragraph (8B) applies where—
(a) a transitional tax-free amount certificate(23) is issued in relation to an individual, and
(b) the individual subsequently becomes a member of a pension scheme (“the new pension
scheme”).
(8B) The relevant person must send a copy of the certificate to the scheme administrator of the
new pension scheme.
(8C) Sub-paragraph (8B) must be complied with—
(a) before the end of the period of 90 days beginning with the day on which the individual
becomes a member of the new pension scheme, and
(b) before the first day on which a relevant benefit crystallisation event occurs in relation to
the individual after the day on which the individual becomes a member of the new pension
scheme.”
(4) In paragraph 129 (paragraphs 125 to 128: interpretation), in sub-paragraph (4C), for the
words from “by the amount” to the end substitute “(but not below zero) by the amount given by
the following formula—
“
where—
“A” is the amount or (if more than one) the sum of the amounts mentioned in sub-
paragraph (4B)(b);
“B” is the individual’s lifetime allowance at the time the individual reached the age of 75.”
Part 3
Amendments of subordinate legislation
The Pension Sharing (Pension Credit Benefit) Regulations 2000
10. In the Pension Sharing (Pension Credit Benefit) Regulations 2000(24), in regulation 3
(pension credit benefit in lump sum form), in paragraph (a)—
(a) after “(a),” insert “(aa),”;
(b) for “, (f) or (g)” substitute “or (f)”.
(22) “Lifetime allowance previously-used amount” is defined in paragraph 129 of Schedule 9 to FA 2024 (inserted by S.I.
2024/1012).
(23) “Transitional tax-free amount certificate” is defined in paragraph 127 of Schedule 9 to FA 2024 (as amended by S.I.
2024/1012).
(24) S.I. 2000/1054. Regulation 3 was substituted by S.I. 2009/2930 and was amended by S.I. 2016/289.
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The Registered Pension Schemes (Accounting and Assessment) Regulations 2005
11. In the Registered Pension Schemes (Accounting and Assessment) Regulations 2005(25), in
regulation 8 (modifications and application of TMA), in paragraph (3), in the modified section 9(1A)
(ca), after sub-paragraph (v) insert—
“(vi)section 637M(2) (certain flexi-access drawdown lump sum death benefits),”.
The Registered Pension Schemes (Provision of Information) Regulations 2006
12. In the Registered Pension Schemes (Provision of Information) Regulations(26), in
regulation 14ZC (information provided by scheme administrators on recognised transfers), after
paragraph (7) insert—
“(8) Paragraph (9) applies if—
(a) in connection with a member of a registered pension scheme (“the transferring
scheme”), there is a recognised transfer(27) from the transferring scheme to
another registered pension scheme (“the recipient scheme”), and
(b) either—
(i)immediately before the transfer, the member is entitled under any
arrangement under the transferring scheme to a stand-alone lump sum, or
(ii)at some time in the future the member would (in the absence of the transfer
or any other transfer) become entitled under any such arrangement to such
a lump sum.
(9) The scheme administrator of the transferring scheme must provide the scheme
administrator of the recipient scheme with a statement stating the amount of the 5th April
2023 maximum.
(10) In paragraphs (8) and (9) and this paragraph—
“the 5 April 2023 maximum” means the maximum amount that, on 5th April 2023,
could have been paid to the member under the arrangement in question by way of a
stand-alone lump sum;
“stand-alone lump sum” has the meaning given by article 25 of the Taxation of Pension
Schemes (Transitional Provisions) Order 2006(28).
(11) The requirements in paragraphs (6) and (9) must be complied with before the end
of the period of 3 months beginning with the date of the recognised transfer in question.”
The Registered Pension Schemes and Overseas Pension Schemes (Electronic Communication
of Returns and Information) Regulations 2006
13.—(1) The Registered Pension Schemes and Overseas Pension Schemes (Electronic
Communication of Returns and Information) Regulations 2006(29) are amended as follows.
(2) In Schedule 1 (information which must be supplied to HMRC by an approved method of
electronic communication), in the entry beginning “An event report”—
(a) for “in entries” substitute “in any of entries”;
(b) after “21” insert “and 24”.
(25) S.I. 2005/3454. Regulation 8 was amended by S.I. 2014/1928, 2024/356 and 2024/1012.
(26) S.I. 2006/567. Regulation 14ZC was inserted (amongst other provisions) by paragraph 87 of Schedule 1 to the Taxation of
Pensions Act 2014 (c. 30). It was amended by S.I. 2015/606 and 2024/1012.
(27) “Recognised transfer” is defined in section 169 of FA 2004.
(28) S.I. 2006/572. Article 25 (amongst other provisions) was substituted by S.I. 2006/2004 and was amended by S.I. 2011/1782.
(29) S.I. 2006/570. These Regulations were relevantly amended by paragraph 123 of Schedule 9 to FA 2024 and by S.I. 2009/56,
2011/702, 2012/884, 2013/1114 and 2013/2259.
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(3) In Schedule 2 (information which may be supplied either to or by HMRC by an approved
method of electronic communication), for the entry beginning “An amendment to an event report”
substitute— “An amendment to an event report that was subject to regulation 4 (information which
must be delivered by electronic means).
“Event report” in this entry means a report in respect of a reportable event specified in the table in
regulation 3(1) of the Registered Pension Schemes (Provision of Information) Regulations 2006.”
The Taxation of Pension Schemes (Transitional Provisions) Order 2006
14.—(1) The Taxation of Pension Schemes (Transitional Provisions) Order 2006(30) is amended
as follows.
(2) In article 23 (modification of paragraph 34 of Schedule 36), in paragraph (2), in the modified
paragraph 2(1) of Schedule 29, in the definition of B, for “(5)” substitute “(7)”.
(3) In article 23D (modifications of Schedule 36 to FA 2004), after paragraph (2) insert—
“(3) In paragraph 34(3), in the modified paragraph 2 of Schedule 29, in sub-
paragraph (2), for the definition of D substitute—
““D” is—
(a) in a case in which the lump sum is paid in connection with the individual
becoming entitled to a trivial commutation lump sum(31) within paragraph 7A
of Schedule 29, the amount of the trivial commutation lump sum;
(b) otherwise, the relevant capital amount in relation to the relevant pension (see
sub-paragraph (6));”.”
(4) In article 25 (stand-alone lump sums: introductory and definition), in paragraph (2), for
“article 25C deals” substitute “articles 25C to 25CC deal”.
(5) In article 25CA (circumstance A: tax treatment of stand-alone lump sums), after paragraph (4)
insert—
“(5) Section 637U of ITEPA 2003 (availability of individual’s allowances where lump
sums or lump sum death benefits already paid by non-UK schemes)(32) has effect as if
references in that section to a pension commencement lump sum included a stand-alone
lump sum.”
(6) In article 25CB (circumstance B: tax treatment of stand-alone lump sums), after paragraph (4)
insert—
“(5) Section 637U of ITEPA 2003 (availability of individual’s allowances where lump
sums or lump sum death benefits already paid by non-UK schemes) has effect as if
references in that section to a pension commencement lump sum included a stand-alone
lump sum.”
(7) In article 25CC (circumstance C: tax treatment of stand-alone lump sums), after paragraph (5)
insert—
“(6) Section 637U of ITEPA 2003 (availability of individual’s allowances where lump
sums or lump sum death benefits already paid by non-UK schemes) has effect as if
(30) S.I. 2006/572. Article 23 was substituted by S.I. 2024/1167. Article 23D (amongst other provisions) was inserted by S.I.
2009/1172 and was amended by S.I. 2024/1012 and 2024/1167. Articles 25 and 25D (amongst other provisions) were
substituted by S.I. 2006/2004. Article 25 was amended by S.I. 2011/1782. Article 25D was amended by paragraph 95 of
Schedule 9 to FA 2024. Articles 25CA, 25CB and 25CC were inserted by paragraph 95 of Schedule 9 to FA 2024. Articles
25CA and 25CC were amended by S.I. 2024/356, 2024/1012 and 2024/1167. Article 25CB was amended by S.I. 2024/356.
(31) “Trivial commutation lump sum” is defined in paragraph 7 of Schedule 29 to FA 2004.
(32) Section 637U of ITEPA 2003 was inserted by regulation 2(6) of these Regulations.
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references in that section to a pension commencement lump sum included a stand-alone
lump sum.”
(8) In article 25D (stand-alone lump sums: further provisions)—
(a) in paragraph (2), omit the second sentence;
(b) for paragraph (3) substitute—
“(3) In paragraph (2) “the stand-alone lump sum maximum” means—
where—
“A” has the same meaning as in the modified paragraph 2 of Schedule 29 contained
in paragraph 28(3) of Schedule 36;
“B” has the same meaning as in that modified paragraph 2, but reading references
in it to a pension commencement lump sum as including a stand-alone lump sum.”
The Financial Assistance Scheme (Tax) Regulations 2010
15.—(1) The Financial Assistance Scheme (Tax) Regulations 2010(33) are amended as follows.
(2) In regulation 4 (lump sum payments by the Financial Assistance Scheme), in paragraph (4),
for the words from “in the definition” to the end substitute “for the purposes of that section—
(a) a lump sum paid to the individual under regulation 17D(34) were a “relevant lump sum”;
and
(b) a payment made in respect of the individual under regulation 18A in the form of a lump
sum were a “relevant lump sum death benefit”.”
(3) In regulation 5 (application of relevant allowance provisions), omit paragraph (3)(za).
(4) Omit regulation 13A (information provided by or in relation to qualifying members to the
FAS scheme manager in relation to the transitional tax-free amount certificates).
(5) For regulation 19 substitute—
“Transitional provisions: lump sums
19.—(1) Paragraph 2 of Schedule 29 to FA 2004 (registered pension schemes: authorised
lump sums - supplementary)(35) as modified by paragraph 28(3) of Schedule 36 to that Act
has effect, in relation to a qualifying member or deceased qualifying member, as if references
to a pension commencement lump sum included a lump sum under regulation 17D.
(2) Part 6 of Schedule 9 to FA 2024(36) (transitional provision relating to abolition of
lifetime charge) is modified as follows.
(3) Paragraph 126 (availability of individual’s lump sum and death benefit allowance) has
effect in relation to a qualifying member or deceased qualifying member as if before sub-
paragraph (4)(a)(i) there were inserted—
“(zi)before 6 April 2024 a payment is made in respect of the individual under
regulation 18A in the form of a lump sum,”.
(33) S.I. 2010/1187. Regulations 4 and 19 were amended by, and sub-paragraph (za) of paragraph (3) of regulation 5 and
regulations 13A, 20 and 21 were inserted by, S.I. 2024/1012.
(34) “Regulation 17D” and “regulation 18A” refer, respectively, to regulations 17D and 18A in the Financial Assistance Scheme
Regulations 2005 (S.I. 2005/1986). Regulations 17D and 18A were inserted (amongst other provisions) by S.I. 2010/1149.
(35) 2004 c. 12. Paragraph 2 was substituted by paragraph 26 of Schedule 9 to FA 2024 and was amended by S.I. 2024/1012.
Paragraph 28(3) of Schedule 36 was substituted by paragraph 83 of Schedule 9 to FA 2024.
(36) 2024 c. 3. Paragraphs 126, 128 and 129 were amended by S.I. 2024/356 and 2024/1012.
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(4) Paragraph 128 (provision of information to members) has effect in relation to a
qualifying member or deceased qualifying member as if after sub-paragraph (6)(a)(zi) there
were inserted—
“(zii)before 6 April 2024 a payment is made in respect of the member under regulation 18A
in the form of a lump sum,”.
(5) Paragraph 129(1) (meaning of “lump sum transitional tax-free amount”) has effect in
relation to a qualifying member or deceased qualifying member as if before paragraph (a) there
were inserted—
“(za) each lump sum under regulation 17D (if any) to which the member has, before
6 April 2024, become entitled,”.”
(6) For regulation 20 (transitional tax-free amount certificates) substitute—
“Certification administrators
20. In Part 6 of Schedule 9 to FA 2024 (transitional provision relating to abolition of
lifetime charge), in paragraph 129(5), the definition of “certification administrator” has effect
in relation to a qualifying member or deceased qualifying member as if before paragraph (a)
there were inserted—
“(za) the FAS scheme manager(37),”.
Provision of information by qualifying members to FAS scheme manager
20A.—(1) Paragraph 127B of Schedule 9 to FA 2024 (provision of information by
individuals to certification administrators)(38) is modified as follows.
(2) Sub-paragraphs (8A) to (8C)(39) have effect in relation to an individual becoming a
qualifying member as they have effect in relation to an individual becoming a member of a
pension scheme.
(3) In sub-paragraph (8B) (as it has effect by virtue of this regulation), the reference to the
scheme administrator of the new pension scheme is to the FAS scheme manager.”
(7) In regulation 21 (provision of information by FAS scheme manager to qualifying members)—
(a) in sub-paragraph (b)—
(i)after “reference to a” insert “member of a”;
(ii)for “the FAS; and” substitute “a qualifying member”(40);
(b) omit sub-paragraph (c).
Christian Wakeford
Taiwo Owatemi
Two of the Lords Commissioners of His
24th June 2026 Majesty’s Treasury
(37) “FAS scheme manager” is defined in regulation 1(3) of S.I. 2010/1187.
(38) Paragraph 127B of Schedule 9 was inserted by S.I. 2024/1012. The definition of “certification administrator” was inserted
by S.I. 2024/1012.
(39) Sub-paragraphs (8A) to (8C) were inserted by regulation 9(3) of these Regulations.
(40) “Qualifying member” is defined in regulation 1 of S.I. 2010/1197 by reference to regulation 15(1) of S.I. 2005/1986.
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EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations amend and modify primary and subordinate legislation to make further
consequential provision in connection with the removal of the lifetime allowance and the lifetime
allowance charge by the Finance (No. 2) Act 2023 (c. 30) and the Finance Act 2024 (c. 3).
A reference in this Explanatory Note to “FA” followed by a year is a reference to a Finance Act of
that year. A reference in this Explanatory Note to “ITEPA 2003” is a reference to the Income Tax
(Earnings and Pensions) Act 2003 (c. 1).
The amendments made by regulations 2(6), 4(2), 12, and 14(4) to (7) of these Regulations have
effect in relation to events occurring on or after 29th June 2026. The amendments made by the rest
of these Regulations have effect for the tax year 2024-25 and for subsequent tax years.
Paragraph 134(2)(b) of Schedule 9 to FA 2024 allows regulations to be made after 5 April 2024 so
as to have effect tax years 2024-25, 2025-26 and subsequent tax years. Regulations made under this
paragraph may not be made after 30th June 2026 (paragraph 134(4) of Schedule 9 to FA 2024, as
amended by section 59 of FA 2026 (c. 11)).
Part 2 of these Regulations contains provisions which amend primary legislation.
Regulation 2 amends section 574A of ITEPA 2003 as to relevant lump sums paid from an individual’s
overseas pension scheme. It also amends section 637Q, 637S and 637T of ITEPA to make provision
about the amount of an individual’s lump sum allowance on the occurrence of a relevant benefit
crystallisation event, including where more than one such event occurs on the same day in relation
to an individual. It also inserts a new section 637U into ITEPA 2003 which treats lump sums already
paid by an overseas pension scheme as a relevant benefit crystallisation event for the purpose of
calculating an individual’s available allowances.
Regulation 3 amends section 255 of FA 2004 (c. 12) to allow the Commissioners for His Majesty’s
Revenue and Customs (“HMRC”) to make regulations as to the making of assessments in respect of
certain flexi-access drawdown lump sum death benefits under section 637M(2) of ITEPA 2003.
Regulation 4 amends Schedule 29 to FA 2004. Paragraph 8 of Schedule 29 is amended so that
amounts transferred to a member’s Qualifying Recognised Overseas Pension Scheme (“QROPS”)
after 6 April 2006 are included in the member’s relevant crystallised rights for the purposes of
calculating the value of a member’s trivial commutation lump sum payment. The small lump sum
payments specified in new sub-paragraph (3) of paragraph 8 are not included in this valuation.
It also amends paragraphs 12A and 16 of Schedule 29 to make consequential provision as to the
availability of lump sum allowance and lump sum death benefit allowance.
Regulation 5 amends Schedule 36 to FA 2004. It amends the definition of “relevant protection
provision” in each of paragraphs 18, 20A, 20B and 20E of Schedule 36 so that this has the meaning
given in paragraph 20H(3) of that Schedule. It also amends paragraph 29 of Schedule 36 to substitute
the method of calculating “the applicable amount” in relation to a defined benefits arrangement or a
collective money purchase arrangement, and gives HMRC the power to make regulations as to the
determination of the value of crystallised pension rights. It also amends paragraph 34 of Schedule 36
so that when calculating “the additional lump sum amount” in relation to a pension commencement
lump sum the value of “F” in the calculation is either 1,073,100 or, if a relevant protection provision
applies, the member’s lump sum and death benefit allowance. It also amends paragraph 34A of
Schedule 36 to make minor amendments to the modified version of section 637Q(6)(b) of ITEPA
2003.
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Regulation 6 amends section 30 of the Income Tax Act 2007 (c. 3) to omit section 214 of FA
2004 from provisions included in the calculation of a person’s income tax (section 214 imposed the
lifetime allowance charge and was repealed by FA 2024).
Regulation 7 makes minor amendments to Schedule 6 to FA 2014 (c. 26), as to transitional
protections relating to the new standard lifetime allowance.
Regulation 8 makes minor amendments to Schedule 4 to FA 2016 (c. 24) as to transitional protections
relating to the lump sum allowance and the lump sum and death benefit allowance.
Regulation 9 amends Schedule 9 to FA 2024. Paragraph 127A of Schedule 9 is amended so
that individuals with enhanced protection have the full amount of the member’s overseas transfer
allowance available, and to make provision as to the reduction of the individual’s lifetime allowance
previously-used amount where one or more crystallised drawdown amounts are attributable to
benefit crystallisation events occurring before 6th April 2024. Paragraph 127B is amended to require
individuals issued with a transitional tax-free certificate who subsequently become a member of a
new pension scheme to send a copy of the certificate to the scheme administrator of the new pension
scheme. Paragraph 129 is amended to substitute a new provision in the calculation of the lifetime
allowance previously-used amount.
Part 3 of these Regulations contains provisions which amend subordinate legislation.
Regulation 10 makes minor amendments to the Pension Sharing (Pension Credit Benefit)
Regulations 2000 (S.I. 2000/1054) as to pension credit benefit in lump sum form.
Regulation 11 makes amendments to the Registered Pension Schemes (Accounting and Assessment)
Regulations 2005 (S.I. 2005/3454) which are consequent on the amendments made to FA 2004 by
regulation 3 of these Regulations.
Regulation 12 amends regulation 14ZC of the Registered Pension Schemes (Provision of
Information) Regulations (S.I. 2006/567) to require pension scheme administrators of transferring
schemes to provide the scheme administrator of the recipient scheme with certain information on
a recognised transfer to the recipient scheme. This requirement applies where either the member is
entitled to a stand-alone lump sum under the transferring scheme immediately before the transfer, or
at some time in the future would become entitled to such a lump sum under any such arrangement.
Regulation 13 amends Schedules 1 and 2 to the Registered Pension Schemes and Overseas Pension
Schemes (Electronic Communication of Returns and Information) Regulations 2006 (S.I. 2006/570)
to require (in the case of information referred to in Schedule 1) and to allow (in the case of
information referred to in Schedule 2) information which is to be provided in event reports to be
supplied to HMRC by electronic means.
Regulation 14 amends certain modifications made to Schedules 29 and 36 of FA 2004 by the Taxation
of Pensions (Transitional Provisions) Order 2006 (S.I. 2006/572) relating to the calculation of trivial
commutation lump sums and stand-alone lump sums.
Regulation 15 amends the Financial Assistance Scheme (Tax) Regulations 2010 (S.I. 2010/1187)
(“the 2010 Regulations”). It amends the definition of “lump sum” in relation to lump sums paid by
the Financial Assistance Scheme, substitutes regulations 19 and 20 and inserts a new regulation 20A
into the 2010 Regulations to make transitional provision in relation to such lump sums and as to the
provision of information by scheme members and scheme managers.
A TIIN was published on 29th July 2024 for the Finance Act 2024 and can be found here: https://
www.gov.uk/government/collections/tax-information-and-impact-notes-tiins. No separate TIIN has
been prepared for this instrument.
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