RPSM13100480 - Technical Pages: International: Enhancement: Recognised overseas scheme transfer factor: Examples of how to calculate the factor

Examples of how to calculate the recognised overseas scheme transfer factor

Example 1

Ken transferred £200,000 from his arrangement under a recognised overseas pension scheme to a registered pension scheme on 6 April 2007. He doesn't have a relevant relievable amount. The standard lifetime allowance for the 2007/08 tax year is £1.6 million so his recognised overseas scheme transfer factor is calculated by dividing 200,000 by 1.6 million. The resulting factor is 0.125, but that is rounded up to 0.13.

Example 2

Amanda transferred £800,000 from her recognised overseas pension scheme to a registered pension scheme on 6 December 2007. She had a relevant relievable amount of £400,000

So the amount at step b in RPSM13100470 is

£800,000 - £400,000 = £400,000

The recognised overseas scheme transfer factor is therefore 0.25. That is calculated by dividing £400,000 by £1.6 million (the standard lifetime allowance for the 2007-2008 tax year).

£400,000/£1.6 million = 0.25