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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

short-term annuity

    37(as defined in paragraph 6 of Schedule 28 to the Finance Act 2004) in relation to a member of a pension scheme, an annuity payable to the member if:

    (A) the member becomes entitled to it before 6 April 2015 and:149

      1. (a) it is purchased by the application of sums or assets representing the whole or any part of the member's101 drawdown101 pension fund (as defined in paragraph 8 of that Schedule) in respect of an arrangement;
      1. (b) it is payable by an insurance company;
      1. (c) the member had an opportunity to select an insurance company;
      1. (d) it is payable for a term which does not exceed five years; and101
      1. (e) it is either a level annuity, an increasing annuity or a relevant linked annuity; or149

    (B) the member becomes entitled to it on or after 6 April 2015; and 149

      1. (a) it is purchased by the application of sums or assets representing the whole or any part of the member’s:149
        1. (i) drawdown pension fund (as defined in paragraph 8 of that Schedule) for an arrangement; or149
        1. (ii) flexi-access drawdown pension fund (as defined in paragraph 8A of that Schedule) for an arrangement; and149
      1. (b) it is payable by an insurance company; and149
      1. (c) it is payable for a term which does not exceed five years.149