RPSM11104870 - Technical Pages: Lifetime allowance: Valuing benefits on BCEs: Transfer to a qualifying recognised overseas pension scheme – BCE 8: Process

Process of testing for the lifetime allowance for BCE 8

[s215][s216(1), BCE 8][s218 to s220][Reg 3 – ‘reportable event 9’, The Registered Pension Schemes (Provision of Information) Regulations 2006SI 2006 No. 567]

The process the scheme administrator follows here is exactly the same as where any form of authorised benefit is paid out, i.e. as with BCEs 1 to 6.

Any chargeable amount identified will be treated as a retained amount, with the lifetime allowance charge becoming due at the rate of 25%. This is because even though the amount/assets transferred are paid out of the scheme they are not paid ‘to the individual’. See RPSM11105210 for a further explanation on the rate of lifetime allowance charge imposed here.

The scheme administrator is also obliged to report the transfer to HMRC - see RPSM14101070.