RPSM11103350 - Technical Pages: Lifetime allowance: The process for testing: In member's lifetime: Information from scheme: Example 2 what should be on the member statement

Example 2 what should be stated on the member statement

Claudette is entitled to an enhanced lifetime allowance of 0.5 (so her lifetime allowance will at any BCE be 1.5 times the level of the standard lifetime allowance at that time).

In the 2006/07 tax year Claudette crystallises £900,000 under her registered pension scheme (through BCE 4 and BCE 6). This represents 60% 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 60% of the standard lifetime allowance under their scheme.

In the 2007/08 tax year Claudette crystallises another £1.12 million through BCE 1 and BCE 6 under her pension scheme. This represents 70% of the standard lifetime allowance for that tax year (£1.6 million). No chargeable amount arises because of Claudette’s enhanced lifetime allowance entitlement.

That tax year the scheme administrator sends her a statement saying, that in total, she has used up 130% of the standard lifetime allowance under their scheme. This is the 70% she used up that tax year and the 60% she used up the previous tax year.

In the 2008/09 tax year Claudette 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 130% of the standard lifetime allowance under their scheme.