Section 150A | Certain pension interests treated as part of estate ^F1

(1)For the purposes of this Act a member of a registered pension scheme, a qualifying non-UK pension scheme or a section 615(3) scheme is treated as beneficially entitled immediately before their death to property (“notional pension property”) by reference to the arrangements under the scheme as they stand at that time.^F1

(2)The value of the member’s notional pension property in relation to the scheme is calculated as follows—^F1

Step 1For each money purchase arrangement under the scheme add together—then deduct the value of any property within paragraph (a) or (b) that may only be used to provide an excluded benefit.

the value of any property that—

is held in a pension pot, and

may or must be used to provide benefits under the arrangement on the death of the member, and

the value of any property that—

is not held in a pension pot, and

may be and can reasonably be expected to be used to provide benefits under the arrangement on the death of the member,

Step 2For each defined benefits arrangement under the scheme add together—then deduct the amount of any benefit within paragraph (a), (b) or (c) that may only be paid as an excluded benefit.

the amount of any benefit that must be paid as a lump sum death benefit under the arrangement on the death of the member,

the amount of any benefit not within paragraph (a) that may be and can reasonably be expected to be paid as a lump sum death benefit under the arrangement on the death of the member, and

the amount of any benefit that may be and, assuming that the maximum amount possible is paid as a lump sum death benefit, can reasonably be expected to be paid as a scheme continuation payment under the arrangement on the death of the member,

Step 3Add together each of the amounts given at Steps 1 and 2.

(3)In determining for the purposes of subsection (2) any question as to what can reasonably be expected, regard is to be had (in particular) to appropriate actuarial assumptions.^F1

(4)Except under this section, no interest in or under a registered pension scheme, a qualifying non-UK pension scheme or a section 615(3) scheme is taken into account for the purposes of this Act in determining the value of the estate of a member of the scheme immediately before their death.^F1

(5)For the purposes of section 6 (excluded property), notional pension property in relation to a pension scheme is regarded as situated in the country or territory in which the scheme is established.^F1

(6)In subsection (2)—^F1

“excluded benefit”, in relation to a pension scheme, means a benefit that may only be paid under the scheme as one or more of the following—

a dependants’ scheme pension;

a trivial commutation lump sum death benefit whose payment to a person extinguishes the person’s entitlement to a dependants’ scheme pension;

a dependants’ annuity, or a nominees’ annuity, that was purchased together with a lifetime annuity payable to the member (and for that purpose “purchased together” is to be construed in accordance with paragraphs 17(1A) and 27AA(2) of Schedule 28 to the Finance Act 2004);

any amount that—

is payable as a benefit (in any form) in respect of a member of the scheme if the member is in employment or other work of a particular description immediately before their death, and

is not payable as a benefit (in any form) in respect of a member of the scheme if the member does not meet those conditions;

“held in a pension pot” means available for the purpose of providing benefits to or in respect of one specific member of the scheme;

“scheme continuation payment” means a payment made—

in relation to a registered pension scheme, in accordance with pension rule 2 in section 165(1) of the Finance Act 2004 (continuing payments after death);

in relation to a qualifying non-UK pension scheme or a section 615(3) scheme, in such a way as would be in accordance with that rule if the scheme in question were a registered pension scheme.

(7)Each of the following has the same meaning in this section as in Part 4 of the Finance Act 2004 (pension schemes etc)—^F1

“arrangement” (see section 152(1) of that Act);

“defined benefits arrangement” (see section 152(6) of that Act);

“dependants’ annuity” (see paragraph 17 of Schedule 28 to that Act);

“dependants’ scheme pension” (see paragraph 16 of Schedule 28 to that Act);

“lifetime annuity” (see paragraph 3 of Schedule 28 to that Act);

“lump sum death benefit” (see section 168(2) of that Act);

“money purchase arrangement” (see section 152(2) of that Act);

“nominees’ annuity” (see paragraph 27AA of Schedule 28 to that Act);

“trivial commutation lump sum death benefit” (see paragraph 20 of Schedule 29 to that Act);

but for the purposes of this section those definitions are to be read with any necessary modifications in applying them to a qualifying non-UK pension scheme or a section 615(3) scheme.