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 6 April 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.
Example
Helen receives a payment from a relevant non-UK scheme on 31 December 2008. She came to the UK as a member of the scheme in 2002.
Her pension input amount for 2006/07 is £40,000.
Her pension input amount for 2007/08 is £40,000.
Her pension input amount for the period from 6 April 2008 to 31 December 2008 is £30,000.
The amount of her UK tax-relieved fund is therefore £110,000.
| Glossary ( RPSM20000000) |
