Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Employment Income Manual

HM Revenue & Customs
, see all updates

Employment income provided through third parties: exclusions: retirement benefits etc: transfers between certain foreign pension schemes etc: example

Section 554X ITEPA 2003

This example illustrates the rules of Section 554X discussed in EIM45645.

A is a member of an EFRBS (not registered) which is established and managed overseas. Contributions used to be paid with exemption under section 390 ITEPA 2003. The last contribution was paid on 5 April 2006 the value of X’s fund then stood at £800,000.

Since then, investment returns have increased the value of A’s fund to £1 million.

A transfers the entire £1 million fund to another overseas pension scheme which is more suited to A’s retirement location.

In making this transfer, the EFRBS takes a relevant step under Section 554C.

However, Section 554X prevents this relevant step from giving rise to Part 7A income, because the transfer comes within Scenario 2 in EIM45645.