A pension commencement lump sum cannot be paid where all the benefits are being paid in lump sum form. This is because FA 2004 requires a pension commencement lump sum to be paid in connection with a related pension.

Where on 5 April 2006 an individual’s total uncrystallised rights in all relevant pension arrangements could have been taken entirely as a lump sum benefit the individual can still receive all his benefits in lump sum form if certain conditions are met.

A stand-alone lump sum may be payable to an individual with enhanced protection where:

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