RPSM13101140 - Technical Pages: International: Migrant member relief: Claims procedure: Tax return: SA100 and SA101

Claims procedure: Tax Return: SA100 and SA101

In order for a relevant migrant member to claim UK relief on any contribution made by, or in respect of, them to a qualifying overseas pension scheme in a tax year they must make a claim for the relief in a Tax Return. Members of overseas pension schemes who are entitled to transitional corresponding relief must also claim such relief through a Tax return.

Ordinarily, individuals claiming tax relief under the migrant member relief or transitional corresponding relief provisions on contributions that they have made to an overseas pension scheme should enter the amount of contributions eligible for relief at box 14.4 on the SA100 Tax Return. That is the case even if the individual is a “tax equalised” employee within the Modified PAYE arrangement (see RPSM13101180), or if their PAYE coding has been adjusted in response to an in-year claim so as to provide relief on a provisional basis (see RPSM13101170).

Employees should, where possible, enter at box 1.26A on the SA101 Employment Pages of the Tax Return the amount of any contributions made by their employer to an overseas pension scheme in respect of them on which they are exempt from income tax under the migrant member relief or transitional corresponding relief provisions. Providing a contributions figure may not be straightforward and the SA101 Notes for 2006/07 allow “that:

• if your scheme gives you a statement of such employer contributions paid over the calendar year (or a different year) ending within the 2006/07 tax year you can enter that figure.
• if your scheme provides defined benefits and gives you a statement of the increase in value of your rights for a year ending during the 2006/07 tax year, you should enter instead that figure minus any contributions you made to the scheme in the same year.  (A scheme providing defined benefits is typically one in which the level of benefits is calculated by reference to your final salary and length of service with your employer.)
• if your scheme provides defined benefits and does not give you such a statement you need not make an entry.”

As explained in Help Sheets IR211 and IR212, individuals claiming tax relief under the migrant member relief or transitional corresponding relief provisions in relation to personal and/or their employer’s contributions should confirm in box 1.40 on the SA101 Employment Pages of the Tax Return:

• the name of the qualifying overseas pension scheme and its QOPS reference, or
• the name and SF74 reference of the scheme recognised as “corresponding” by Pension Scheme Services.

However, if the individual has made an in-year claim they can provide at box 1.40 a reference to the letter of claim instead. This can be done even if the in-year claim has not been processed before the end of the tax year.

Where an individual’s claim relates solely to tax relief for pension contributions against employment income there is no need to make an entry on the IR302 or the IR304.