Taxes Consolidation Act 1997 Schedule 23B paragraph 5

Meaning of previously used amount

Paragraph 5 defines the "previously used amount" for the purposes of calculating how much of the standard fund threshold or personal fund threshold remains available at the time of a current benefit crystallisation event.

• Where one prior benefit crystallisation event has occurred, the previously used amount is the amount crystallised by that event, adjusted by a specified formula.
• Where two or more prior benefit crystallisation events have occurred, the previously used amount is the aggregate of the amounts crystallised by each event, with each amount individually adjusted by the same formula.
• The adjustment formula multiplies each prior crystallised amount by the higher of 1 and the ratio of the current threshold to the threshold at the date of the prior event, ensuring a prior amount is never reduced below its original capital value.
• An accompanying table sets out age-related valuation factors ranging from 37 (for ages up to and including 50) down to 22 (for ages 70 and over).