As explained in NIM25001, a person is not entitled to pay (ie, is precluded from paying) Class 3 NICs in certain circumstances. One of those is that a person who:
cannot pay Class 3 NICs for any part of a period in respect of
which such rights have been transferred to the PESC.
Mr A has worked for an EC institution since 6 April 2007. From April 1980 to 5 April 2007, he worked in England and paid enough Class 1 NICs in each of the 1980/81 – 2006/07 tax years to make each of those a qualifying year for State Pension and other benefits purposes.
In October 2007, Mr A applies to transfer to the PESC the UK State Pension rights he has acquired from the Class 1 NICs he paid in those years. The Pension Service transferred to the PESC the actuarial value of those rights, which are calculated by the Government Actuary’s Department, in July 2008.
In October 2008, Mr A enquires about paying Class 3 NICs for the 2002/03, 2003/04, 2004/05, 2005/06 and 2006/07 tax years. As those years are part of the period in respect of which his UK State Pension rights were transferred to the PESC, he is not entitled to pay Class 3 NICs for any of those years.
For details of the other circumstances in which a person is precluded from paying Class 3 NICs, see NIM25006 - NIM25016.