RPSM11105370 - Technical Pages: Lifetime allowance: Where the lifetime allowance used up: Liability in the member’s lifetime: Notice provided by the scheme administrator

 [Regs 12 and 14, The Registered Pension Schemes (Provision of Information) Regulations 2006 SI 2006 No. 567] 

After every BCE (or every tax year a pension is payable up to and including the tax year in which the member reaches age 75) the scheme administrator must send the member a statement that confirms the level of lifetime allowance the member used up at that event (or events), and has used up in total under that scheme (see RPSM11103320).

Where a chargeable amount has arisen the scheme administrator must also give the member a notice (see RPSM11103310) that gives details of

• the level of chargeable amount arising at the particular BCE(s),
• how this figure has been calculated,
• the amount of the resulting lifetime allowance charge, and
• whether the scheme administrator has accounted for the charge due, or intends to do so.

Deadline

The scheme administrator must provide the member with the notice within 3 months of the BCE date or each tax year if there is a pension payable.

If the scheme administrator fails to do this there are penalties - see RPSM12100020.

What the member must do with the notice

The notice is needed by the individual in order to complete their self-assessment tax return.