RPSM13102520 - Technical Pages: International: Application of charges to non-UK schemes: Lifetime allowance: Relieved non-UK pension schemes

Relieved non-UK pension schemes

A pension scheme is a relieved non-UK pension scheme if it is not a registered pension scheme and if one or more of the following conditions is met:

1. relief from UK tax has been given in respect of any individual or employer contributions made to it after 5 April 2006 by virtue of schedule 33. That includes contributions that have received migrant member relief ( RPSM13101000) to RPSM13101140 refer) and employer contributions in respect of which an employee is tax- exempt under section 308A ITEPA 2003. It also includes contributions that have received transitional corresponding relief under paragraph 51 of schedule 36 or under articles 15 to 17 of The Taxation of Pension Schemes (Transitional Provisions)Order 2006 - ( RPSM13101100 refers).
   
2. relief from UK tax has been given in respect of contributions paid to it after 5 April 2006 under a double taxation arrangement ( RPSM13102130 refers).
   
3. any of its members has been exempt from liability to tax by virtue of section 307 ITEPA 2003 in respect of provisions for retirement or death benefits made by the employer at any time after 5 April 2006 when it was an overseas pension scheme ( RPSM13101070).

Section 307 ITEPA 2003 exempts members from tax under chapter 10 ITEPA 2003 on their accrual of benefits in the scheme as a benefit in kind. So c above provides that the lifetime allowance charge provisions will apply even where no contributions have been made to the scheme, for example because of a contributions holiday or because the scheme is unfunded.