RPSM13100560 - Technical Pages: International: Enhancement: Recognised overseas scheme transfer factor: Example 2 of defined benefits arrangement relevant relievable amount

Example 2 of calculating the relevant relievable amount for a defined benefits arrangement

Eric transferred £1.21 million from his recognised overseas pension scheme defined benefits arrangement to a registered pension scheme on 6 June 2009.

Eric was working in France when he joined his recognised overseas pension scheme defined benefits arrangement on 6 March 2000. He came to work in the UK on 6 May 2006 and so became someone who is not a relevant overseas individual with effect from 6 April 2006. His pension entitlement as at 6 April 2006 was £30,000 p.a. He was also entitled to a separate lump sum of £60,000.

(£30,000 x 20) + £60,000 = £660,000

Eric returned to work in France on 6 May 2008 and so ceased to be someone who is not a relevant overseas individual with effect from 6 April 2009 whilst still accruing benefits under the scheme. His pension entitlement as at 6 April 2009 was £56,500 p.a. He was also entitled to a separate lump sum of £80,000.

(£56,500 x 20) + £80,000 = £1.21 million

The defined benefits relevant relievable amount is therefore £550,000 (£1.21 million - £660,000)