PSI14.2.24 - Transfer Payments: Benefits from Transfer Payments - Calculation of Lump Sum Certifiable - Transfer Received from PPSs and RACs - Continued Rights

(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)

Where the member does not come within the Finance Act 1989 regime in the receiving occupational scheme, the maximum lump sum benefit payable in respect of a transfer payment from a personal pension scheme is 25% of the value of the accumulated transfer payment at the time of commutation, excluding the value of any Protected Rights and any amounts subject to a NIL certificate (see PSI14.2.15(1) and 14.2.16). Where the transfer is from a retirement annuity contract the maximum is determined by a certificate to be provided by the transferring Life Office. This will show the proportion of the fund which can be paid in lump sum form. These transfer benefits are to be treated as retained benefits (see PSI14.1.2and PSI14.2.10).

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