RPSM13102150 - Technical Pages: International: Application of charges to non-UK schemes: Member payment charges and taxable property unauthorised payment charge: Member's UK tax relieved fund
Member's UK tax-relieved fund
[Paras 1(3) & 3(2), Sch 34][The Pension Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 - SI 2006/207)]
The member payment provisions do not apply to payments from a relevant non-UK scheme made to (or treated as made to), or in respect of, a relieved member of the scheme unless the payment is referable to that member's UK tax-relieved fund under the scheme.
The member's UK tax-relieved fund under a relevant non-UK scheme is that part of the amount held in the scheme in respect of the member that represents any UK tax-relieved contributions paid in respect of the member, and any UK tax-exempt provision made under the scheme in relation to the member, of the nature set out at a, b and c in RPSM13102130. Those relieved contributions and exempt provision must have been made after 5 April 2006. Investment build-up within the relevant non-UK scheme on such contributions and provision is not taken into account for the purposes of the member payment charges because it will not have benefited from UK tax relief.
The amount of the member's UK tax-relieved fund is calculated in accordance with paragraph 3 of schedule 34 and Regulation 2 of The Pension Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (SI 2006/207). The regulations provide for aggregation of the amounts relating to the member in the scheme which are pension input amounts by virtue of schedule 34 (RPSM13102350 to RPSM13102400 refer):
- for each tax year (after 5 April 2006) before that in which the calculation falls to be made, and
- for the period beginning with 6April of the tax year in which the calculation falls to be made and ending immediately before the making of the calculation as if that was a full tax year.
When making this calculation it is necessary to assume that section 229(3) does not apply. That provides that there is no pension input amount for a tax year if, before the end of the tax year, the individual has become entitled to all of their benefits under the scheme or has died.
The UK tax-relieved fund relates to a particular relevant non-UK scheme so if an individual is a member of two such schemes they will have two separate funds.