PSI26.1.19 - Scheme requirements for conversion – General - Valuation test

(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)

This test is set out in Appendix XI of IR 12. The test compares two figures:

• the proposed “transfer value” from the member’s fund, and
• the figure arrived at by performing the calculation set out in Appendix XI.

If the member’s “transfer value” exceeds the Appendix XI value, that member may not be included in the conversion. However, if another valuation under Appendix XI were to take place before the actual date of conversion, and the “transfer value” did not then exceed that second test, the member could be part of the conversion.