RPSM11300080 - Administrator Pages: Lifetime allowance: How the lifetime allowance is operated

When would an individual be entitled to an enhanced lifetime allowance?

There are four main areas where an individual would be entitled to an enhanced lifetime allowance.

1. If the member had accrued rights of more than £1.5 million as at 5 April 2006 and applied to HMRC for primary protection - see RPSM11101060
   
   
2. If the member has received pension credit rights that are derived from a pension that commenced on or after 6 April 2006 and is already in payment and thus already tested for lifetime allowance purposes at the time of the acquisition of the pension credit rights or where pension credit rights were acquired before 6 April 2006 - see RPSM11101130 and RPSM11101170.
   
   
3. Where the member’s scheme has received a transfer in from a recognised overseas pension scheme that has not been subject to UK tax relief - see RPSM11101050.
   
   
4. Where an individual has a period in membership of a registered pension scheme where UK tax reliefs have not been available. This is where the individual is a relevant overseas individual – see RPSM11101040.