Cyllid & Thollau EM

The scheme made a pension commencement lump sum payment...

These payments need to be reported under:

of Regulation 3 of The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567.

In deciding if you need to report a pension commencement lump sum here, you need to apply three tests. The first test is to check whether the member had primary or enhanced protection when the lump sum was paid. If the member had no protection you do not need to complete this section. Where the member had protection you need to apply the second test.

The second test is to check whether the member had transitionally protected lump sum rights, that is lump sum rights worth more than £375,000 on 5 April 2006. The protection certificate issued to the member by HM Revenue & Customs will show details of any transitionally protected lump sum rights. If the member had no such protection you do not need to complete this section. Where the member had protected lump sum rights you need to apply the third test.

The third test is to check whether the lump sum could have been paid under the usual rules for pension commencement lump sums, that is under the unmodified operation of paragraphs one to three of Schedule 29 Finance Act 2004. If the lump sum could have been paid as a pension commencement lump sum under the usual rules, you do not need to complete this section. If the lump sum could not have been paid as a pension commencement lump sum under the usual rules, please complete this section.

In deciding if you need to report a stand-alone lump sum here, there is one test.

Has a stand-alone lump sum been paid to a member with primary protection in the circumstances specified as Circumstance A, in article 25B(2) of SI 2006/572, or has a stand-alone lump sum been paid to a member with enhanced protection in the circumstances specified as Circumstance B, in article 25B(3) of SI 2006/572? If a stand-alone lump sum has been paid in either of these circumstances please complete this section.

For further guidance on pension commencement lump sums and stand-alone lump sums, please refer to the Registered Pension Schemes Manual at RPSM03303050 to RPSM03303061 and RPSM03305051 to RPSM03305054 respectively. The manual can be accessed from the left-hand navigation bar.