RPSM15108020 - Technical Pages: Special annual allowance: Relevant refund amounts: Contributions refund lump sum

This guidance only applies for the 2010-11 and 2011-12 tax years.

Contributions refund lump sum

A refund of contributions is a ‘contributions refund lump sum’ if it meets the following conditions:

• it relates to a particular arrangement under the pension scheme
• the refund lump sum is not any of the lump sums listed in section 166(1) Finance Act 2004, that is it is not a

• • pension commencement lump sum
  • serious ill-health lump sum
  • short service refund lump sum
  • refund of excess contributions lump sum
  • trivial commutation lump sum
  • winding-up lump sum, or
  • lifetime allowance excess lump sum

• the person making the contributions was a ‘high-income individual’ in the tax year the contributions were made (i.e. their relevant income was £130,000 or more for the tax year or in either of the preceding two tax years, or both)
• the refund lump sum is paid in the tax year following the tax year to which the refund relates (i.e. if the refund relates to contributions paid in 2009-2010, the payment must be made in 2010-2011 and if the refund relates to contributions paid in 2010-2011, the payment must be made in 2011-2012), and
• the amount of the lump sum does not exceed the ‘adjusted contributions amount’ for the tax year - see RPSM15108030.