RPSM13100270 - Technical Pages: International: Enhancement: Non-residence factor: Example for other money purchase arrangement

Example of calculating the non-residence factor for an other money purchase arrangement

Marilyn began to accrue benefits under her other money purchase arrangement on 6 January 2006. She was seconded to work overseas on 6 November 2006 and so became a relevant overseas individual on 6 April 2007.

Marilyn returned to work in the UK on 6 May 2010 and so ceased to be a relevant overseas individual on 5 April 2010. That was before a benefit crystallisation event and before she ceased to accrue benefits under the other money purchase arrangement.

The total contributions made by and in respect of Marilyn between 6 April 2007 and 5 April 2010 amounted to £175,000.

The other money purchase arrangement non-residence factor is therefore 0.1. This is calculated by dividing £175,000 by £1.75 million (the standard lifetime allowance for the 2009-2010 tax year).

£175,000/£1.75 million = 0.1