RPSM13200130 - Member Pages: International: Enhancement: Non-residence factor: How is the factor calculated?
How is the non-residence factor calculated?
Broadly speaking, your non-residence factor is calculated by:
- establishing the amount of contributions made to, or benefits accrued under, your pension arrangement after 5 April 2006 whilst you were working overseas as a relevant overseas individual, and
- dividing this figure by the standard lifetime allowance for the tax year in which the earliest of the following events occurs:
- you cease to be a relevant overseas individual,
- you stop accruing benefits under the arrangement, and
- your benefits are crystallised (normally when you first receive a payment from the arrangement).
It is calculated in a number of different ways depending on whether your pension arrangement is
- a cash balance arrangement (see RPSM13100240),
- an other money purchase arrangement (see RPSM13100260),
- a defined benefits arrangement (see RPSM13100280), or
- a hybrid arrangement (see RPSM13100310).
You should seek the advice of your
scheme administrator if you are uncertain as to
the nature of your arrangement under your
registered pension scheme.
Once you have established the nature of your arrangement you
should complete Form APSS 202 (see
RPSM13200150), a copy of which can
be found on the HMRC internet site.
| Glossary ( RPSM20000000) |
