RPSM13101150 - Technical Pages: International: Migrant member relief: Claims procedure: Tax return: SA125

Claims procedure: Tax return: SA125

If an individual’s UK tax-relieved savings in an overseas pension scheme (plus their UK tax- relieved savings in any other pension schemes) increase by more than the annual allowance during a tax year the individual should enter the excess amount at box 25.4 on the SA125 Pensions page. The different bases of calculation of the amount of increase in tax-relieved savings - the pension input amount - under an overseas defined benefits arrangement and under an overseas money purchase arrangement are explained at RPSM13102300 onwards.

An individual should also make an entry on the SA125 Pensions page if in a tax year they receive from their total UK tax-relieved pension input amounts under an overseas pension scheme any of the following:

1. benefits which exceed their available lifetime allowance (see RPSM13102500),
   
   
2. a payment that would be unauthorised if it had been made from a UK registered pension scheme (see RPSM13102110), or
   
   
3. certain lump sum payments that would be authorised but taxable if they had been made from a UK registered pension scheme (see RPSM13102110).

The individual will be liable to a member payment charge on a payment at b or c. However, if such a payment has been made in a tax year and the individual has paid overseas tax on it they should make another entry to record that fact on the SA125 Pensions page as they can receive credit for the overseas tax against an unauthorised payments charge or any of the other member payment charges (see RPSM13102210).

Further information is provided in the SA125 Notes. There is also guidance on the application of the lifetime allowance charge and the other charges to members of overseas pension schemes at RPSM13102000 onwards.

Even if a member has not been served with a Tax Return they remain bound by the normal obligation to notify HMRC of their liability to a charge.