short-term annuity

(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:

1. (a) it is purchased by the application of sums or assets representing the whole or any part of the member's drawdown 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; and
1. (e) it is either a level annuity, an increasing annuity or a relevant linked annuity; or

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

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