RPSM03105550 - Technical Pages: Protecting pension rights from tax charges: Lump sums: Scheme specific protection: Valuation - more than 1 arrangement & over HMRC limit
Valuing lump sum benefits exceeding 25%: more than one arrangement or pension scheme and benefits more than HMRC limits
Where the individual has more than one arrangement under a sole pension scheme or more than one pension scheme in respect of the employment, and either the value of the lump sum rights or the value of the pension rights exceeded the value of the HMRC limits for the employment on 5 April 2006, VULSR and VUR are as follows.
VULSR
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[Paras 32(1) & 25(5) Sch 36] [Paras 32(2, 4, 6, 8 & 9) & 26 Sch 36] |
VULSR is the total value of the uncrystallised lump sum rights determined under paragraph 25(5) Schedule 36 FA 2004 (see RPSM03105070) for each arrangement under the scheme after any appropriate adjustment to the value of the lump sum rights under each arrangement. The adjustment is a deduction from the value of the lump sum rights under an arrangement of a proportion of the excessive lump sum found by applying the formula
Where V = is the value of the uncrystallised lump sum rights under the arrangement
RPSM03105560 gives an example.
VUR
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[Paras 33(1) & 8(5) Sch 36] [Paras 33(2, 4, 6, 8 & 9) & 9(3) Sch 36] |
VUR will be the total value of the uncrystallised pension rights determined under paragraph 8 Schedule 36 (see RPSM03101050 to RPSM03101100) for each arrangement under the scheme. Where the total value of the pension rights is more than the HMRC maximum permitted pension an appropriate adjustment is made to the value of the pension rights under each arrangement. The adjustment is a deduction from the value of the pension rights in an arrangement of a proportion of the excessive pension rights found by applying the formula
Where V = is the value of the uncrystallised pension rights under the arrangement
RPSM03105570 gives an example.
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Glossary (RPSM20000000) |
