Section 554W | Exclusions: certain retirement benefits etc ^F1

(1)This section applies if—^F1

(a)a relevant benefit is provided under a relevant scheme by way of a payment of a lump sum wholly out of rights which A has under the scheme,^F1

(b)A's rights out of which the lump sum is paid are, wholly or partly, pre-6 April 2011 lump sum rights, and^F1

(c)the payment of the lump sum is a relevant step within section 554C.^F1

(2)Chapter 2 does not apply by reason of the relevant step.^F1

(3)If A's rights out of which the lump sum is paid are only partly pre-6 April 2011 lump sum rights, the relevant step is to be treated for the purposes of this Part as being two separate relevant steps—^F1

(a)one in relation to the lump sum so far as it is paid out of rights which are pre-6 April 2011 lump sum rights, and^F1

(b)one in relation to the lump sum so far as it is paid out of rights which are not pre-6 April 2011 lump sum rights,^F1

with subsection (2) applying only in relation to the separate relevant step mentioned in paragraph (a).

(4)In order to give effect to subsection (3), the lump sum is to be apportioned between the two separate relevant steps on a just and reasonable basis.^F1

(5)In this section—^F1

“pre-6 April 2011 lump sum rights” means rights, which accrued before 6 April 2011, specifically to receive relevant benefits by way of lump sum payments,

“relevant benefit” has the same meaning as in Chapter 2 of Part 6, and

“relevant scheme” means an employer-financed retirement benefits scheme (within the meaning of that Chapter) or a superannuation fund to which section 615(3) of ICTA applies.