PSI14.2.8 - Transfer Payments: Benefits from Transfer Payments - Transferred Benefits on a Money Purchase Basis

(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 transfer value is used to buy money purchase benefits, the actual amount payable depends upon the investment experience of the receiving scheme. If it is an insured scheme the transfer payment is normally applied as a premium towards a policy. Sometimes, where the transfer takes place between two insured schemes, a paid-up policy is passed to the receiving scheme. In either case the pension value of the capital sum is calculated by the insurance company.

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