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
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.
