RPSM13100470 - Technical Pages: International: Enhancement: Recognised overseas scheme transfer factor: How to calculate the factor

How to calculate the recognised overseas scheme transfer factor

Where a transfer is made as described in RPSM13100420, an individual's lifetime allowance is enhanced by a recognised overseas scheme transfer factor, which is established as follows:

• Calculate any relevant relievable amount (see RPSM13100490).
• Deduct the result of the first bullet point from the total amount of sums and assets transferred (including the market value of any assets transferred) from an arrangement under a recognised overseas pension scheme (see RPSM14101040) made after 5 April 2006.
• Express the resulting amount in the second bullet point as a factor of the standardlifetime allowance as at the date on which the transfer took place.

The recognised overseas scheme transfer factor can be used by the individual in respect of any benefit crystallisation event occurring after the transfer is made.

RPSM13100480 gives some examples.