| [Para 18, Sch 36] |
An uplift is given to an individual’s level of
lifetime allowance where that individual holds a
pension credit in a
registered pension scheme that was acquired by
that individual before 6 April 2006.
The lifetime allowance enhancement factor here is called the
pre-commencement pension credit factor, and is calculated in a
similar way as the pension credit factor but always by reference to
the
standard lifetime allowance for the 2006-2007 tax
year (£1.5 million).
The legislation also requires the value of the pension credit
to be increased from the month it was acquired to April 2006 by
RPI.
The formula in the legislation for the calculation of the
pre-commencement pension credit factor is
IAPC/SLA
IAPC = the amount of the pension credit awarded for the purposes of section 29(1) of Welfare Reform and Pensions Act 1999 or Article 26(1) of Welfare Reform and Pensions (Northern Ireland) Order 1999 increased by the percentage increase in the retail price index from the month in which the rights were acquired to April 2006.
SLA = the standard lifetime allowance for the tax year 2006/07
| Glossary ( RPSM20000000) |
