RPSM11101040 - Technical Pages: Lifetime allowance: Level of lifetime allowance: Relevant overseas individual

Where a lifetime allowance enhancement factor arises in relation to a relevant overseas individual (after 5 April 2006)

A lifetime allowance enhancement factor may apply where after 5 April 2006, whilst contributing or accruing benefits under a registered pension scheme, an individual is what the legislation calls a relevant overseas individual. An enhancement is sometimes permitted here where there has been a period when UK tax reliefs have not been available to the individual.

The lifetime allowance enhancement factor here will be one of four different non-residence factors, depending on whether the involved arrangement type is a cash balance, other money purchase, defined benefits or hybrid arrangement.

The precise circumstances where entitlement to the above factors will arise, and the calculations involved, are dealt with in Chapter 13, with all other International issues (see RPSM13100160).