RPSM13100460 - Technical Pages: International: Enhancement: Recognised overseas scheme transfer factor: Benefit payment

Notifying details of the recognised overseas scheme transfer factor when benefits are paid

If an individual intends to rely on a recognised overseas scheme transfer factor they will have to notify the scheme administrator of their registered pension scheme when a benefit crystallisation event occurs. The individual will need to provide the administrator with the unique reference number and the enhancement factor details shown on the certificate.

The administrator will have to include information about the benefit crystallisation event on the Event Report that is made annually to HMRC (see RPSM12301110 ). The administrator will need also to account for any lifetime allowance charge on the quarterly Accounting for Tax return to HMRC.

If an individual has not notified HMRC of an entitlement to a recognised overseas scheme transfer factor before a benefit crystallisation event occurs a lifetime allowance charge may arise and the scheme administrator may have paid the tax due. If the individual subsequently provides the administrator of their registered pension scheme with the unique reference number and the enhancement factor details shown on the certificate the administrator may then send an amended Accounting for Tax return to HMRC and obtain a repayment.