RPSM13101100 - Technical Pages: International: Migrant member relief: Transitional relief

Transitional relief

Corresponding relief

To provide continuity, both individuals and employers may continue to claim tax relief on contributions made to an overseas pension scheme after 5 April 2006 if certain conditions are met. In this way even if those contributions do not qualify under the migrant member relief rules they can still be relieved.

RPSM13101110 sets out what relief is available for individuals on their contributions, RPSM13101115 provides guidance on the exemption that is available for individuals in respect of employer contributions, and RPSM13101120 details what relief is available for employers on their contributions.

Possible Charges

The lifetime allowance and annual allowance provisions will apply in respect of contributions relieved after 5 April 2006 under paragraph 51 of Schedule 36 or under articles 15 to 17 of The Taxation of Pension Schemes (Transitional Provisions ) Order 2006 as if the contributions had received migrant member relief (see RPSM13101030). Member payment charges can also apply to certain payments from a non-UK pension scheme to UK tax resident, and recently resident, individuals out of funds relating to contributions that have after 5 April 2006 received transitional relief as if those contributions had received migrant member relief. This is in line with the treatment of payments from a UK registered pension scheme. The member payment charges provisions are explained at RPSM13102000 onwards.