PSI14.2.20 - Transfer Payments: Benefits from Transfer Payments - Calculation of Lump Sum Certifiable - Finance Act 1989 Regime

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

[PN10.29]

Where the member comes within the Finance Act 1989 regime in the receiving scheme then, irrespective of any limitations in the rules of the transferring scheme and of any certificate given (other than a NIL certificate - see below), transfer benefits may be paid in lump sum form of 2.25 x the initial annual rate of the member's pension (before commutation or allocation) from the transfer payment. In schemes where pension and lump sum are provided separately, the multiple will be 3. In effect, any such certificate can be ignored. Where, however, the transfer payment, either in whole or in part, is subject to a NIL lump sum certificate, the 2.25 or 3 multiple may be applied only to any pension secured by that part of the transfer payment which is not subject to the certificate.

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