(1) Part 4 of the Finance Act 2004 (pension schemes etc) is amended as follows.
(2) Section 172A (payments by registered pension schemes: surrender) is amended as follows.
(3) In subsection (5) omit paragraph (d).
(4) After subsection (5) insert—
“(5A) Subsection (5)(b) applies only if the entitlement is held (or is to be held) by the dependant under an arrangement under the pension scheme relating to the member or dependant.”
(5) In section 207 (authorised surplus payments charge) after subsection (6) insert—
“(6A) Subsection (1) does not apply to an authorised surplus payment to the extent that the payment is funded (directly or indirectly) by a surrender of (or an agreement to surrender) benefits or rights which results in the registered pension scheme being treated as making an unauthorised payment under section 172A.
(6B) Terms used in subsection (6A) which are defined in section 172A have the same meaning as they have in that section.”
(6) The amendments made by this Resolution have effect in relation to surrenders (or agreements to surrender) made on or after 20 March 2014.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.