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(1) Section 218 of the Finance Act 2004 (pension schemes etc: lifetime allowance) is amended in accordance with paragraphs (2) to (4).
(2) For subsections (2) and (3) (standard lifetime allowance is £1,250,000 but may be increased by Treasury order) substitute—
“(2) The standard lifetime allowance for the tax years 2016-17 and 2017-18 is £1,000,000.”
(3) After subsection (5BB) insert—
“(5BC) Where the operation of a lifetime enhancement factor is provided for by any of sections 220, 222, 223 and 224 and the time mentioned in the definition of SLA in the section concerned fell within the period consisting of the tax year 2014-15 and the tax year 2015-16, subsection (4) has effect as if the amount to be multiplied by LAEF were £1,250,000 if that is greater than SLA.
(5BD) Where more than one lifetime enhancement factor operates, subsection (5BC) does not apply if any of subsections (5A), (5B) and (5BA) applies.”
(4) After subsection (5D) insert—
“(5E) Where benefit crystallisation event 7 occurs on or after
(5) The amendments made by paragraphs (2) to (4) have effect for the tax year 2016-17 and subsequent tax years.
(6) The provision made by the Schedule to the 2016 Budget Resolution (Pensions: lifetime allowance) shall have effect.
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.
The schedule to Budget resolution No. 13 is available in Votes and Proceedings.