RPSM11103340 - Technical Pages: Lifetime allowance: The process for testing: In member's lifetime: Information from scheme: Example 1 what should be on the member statement

Example 1 showing what should be stated on the member statement

In the 2006/07 tax year Helen crystallises £150,000 through two BCEs under her registered pension scheme (BCE 1 and BCE 6). This represents 10% of the standard lifetime allowance for that tax year (£1.5 million).

That tax year the scheme administrator sends her a statement saying, that in total, she has used up 10% of the standard lifetime allowance under their scheme.

In the 2007/08 tax year Helen crystallises another £80,000 through BCE 1 and BCE 6 under the same scheme. This represents 5% of the standard lifetime allowance for that tax year (£1.6 million).

That tax year the scheme administrator sends her a statement saying, that in total, she has used up 15% of the standard lifetime allowance under their scheme. This is the 5% she used up that tax year and the 10% she used up the previous tax year.

In the 2008/09 tax year Helen doesn’t crystallise any further benefits under the scheme. The scheme administrator must still send her a statement that tax year saying, that in total, she has used up 15% of the standard lifetime allowance under their scheme.