RPSM11101050 - Technical Pages: Lifetime allowance: Level of lifetime allowance: Transfer from a recognised overseas pension scheme after 5 April 2006

Where a lifetime allowance enhancement factor arises following a transfer from a recognised overseas pension scheme (after 5 April 2006)

Entitlement to a lifetime allowance enhancement factor may arise where a member transfers benefits into a registered pension scheme from a recognised overseas pension scheme after 5 April 2006. In these circumstances an uplift is sometimes given to reflect that those transferred funds (now held in a registered pension scheme) will not have previously benefited from UK tax relief.

The lifetime allowance enhancement factor given in this circumstance is called the recognised overseas scheme transfer factor.

The calculation of this factor varies depending on the type of recognised overseas pension scheme the transfer was made from and whether the transfer took place before 6 April 2012 or on or after that date. The calculations involved and the circumstances in which an enhancement is given are explained in Chapter 13, with all other International issues - see RPSM13100010.