RPSM13100510 - Technical Pages: International: Enhancement: Recognised overseas scheme transfer factor: Example of relevant relievable amount for a cash balance arrangement

Example of how to calculate the relevant relievable amount for a cash balance arrangement

Joseph transferred £400,000 from his recognised overseas pension scheme that was a cash balance arrangement to a registered pension scheme on 6 June 2007.

Joseph began to accrue benefits under his cash balance arrangement on 6 April 2000. He became resident in the UK on 16 October 2006 so he became someone who is not a relevant overseas individual with effect from 6 April 2006. The value of his rights in his cash balance arrangement as at 6 April 2006 amounted to £250,000.

The value of his rights in his cash balance arrangement immediately before the transfer to his registered pension scheme on 6 June 2007 amounted to £300,000. At that date he was still someone who is not a relevant overseas individual and was still accruing benefits under the cash balance arrangement.

The cash balance relevant relievable amount is therefore £50,000 (£300,000 - £250,000)