Income Tax (Earnings and Pensions) Act 2003 section 637

Introduction

Section 637 introduces the chapter dealing with the income tax treatment of authorised lump sums and authorised lump sum death benefits paid by registered pension schemes.

• An authorised lump sum is one permitted by the lump sum rule to be paid by a registered pension scheme to a member of the scheme
• An authorised lump sum death benefit is one permitted by the lump sum death benefit rule to be paid by a registered pension scheme in respect of a member
• Both types of payment must comply with the relevant rules set out in the Finance Act 2004 (sections 166 and 168 respectively)
• Any terminology used in this chapter that also appears in Part 4 of the Finance Act 2004 (the main pensions tax legislation) carries the same meaning