PTM175230 - Lump sum allowance and lump sum and death benefit allowance: Enhancement factors: Overseas transfer factor: Relevant relievable amount for a money purchase arrangement

As of 6 April 2024 there is no longer lifetime allowance. If you are looking for information about protections, enhancement factors and the lifetime allowance charge please see these pages on The National Archives. If you are looking for information about the principles of lifetime allowance and benefit crystallisation events please see these pages of The National Archives.

If you are looking for information about enhancement factors pre-April 2024 please see The National Archive.  The below guidance applies for individuals seeking an enhancement factor from 6 April 2024 to 5 April 2025.

How to calculate the relevant relievable amount for an other money purchase arrangement 

Paragraph 20F(6) and (7) Schedule 36 Finance Act 2004

Where the individual’s arrangement under their recognised overseas pension scheme is a money purchase arrangement other than a cash balance arrangement, the other money purchase relevant relievable amount is calculated in the following way:.

Lump Establish the total amount of contributions made by or in respect of the individual to the other money purchase arrangement between the dates determined under Step A and Step B below:

Step A: the latest of the following dates:

  • the date that the individual became someone who is not a relevant overseas individual ,
  • the date that benefits first began to accrue to or in respect of the individual under the recognised overseas pension scheme other money purchase arrangement, and
  • 6 April 2006.

Step B: the earliest of the following dates:

  • immediately before the transfer was made,
  • the date that the individual ceased to be someone who is not a relevant overseas individual,
  • the date that benefits ceased to accrue to or in respect of the individual under the recognised overseas pension scheme other money purchase arrangement, and
  • 5 April 2024

If the individual has not been a relevant overseas individual during another part of the overseas arrangement active membership period relating to the same other money purchase arrangement, then an amount calculated in the same way in respect of each other part-period should be added to the above amount.

Example of calculating the relevant relievable amount for an other money purchase arrangement 

Rachel transferred £400,000 from her recognised overseas pension scheme other money purchase arrangement to a registered pension scheme on 6 August 2013. 

Rachel began working in France on 20 July 2014 and joined her recognised overseas pension scheme other money purchase arrangement on 6 March 2015.  

She returned to work in the UK on 1 February 2020 and became someone who is not a relevant overseas individual with effect from 6 April 2019. The latest date under Step A is therefore 6 April 2019. 

Rachel started working in the USA on 1 June 2021 and ceased to be someone who is not a relevant overseas individual with effect from 6 April 2021. That was before she made the transfer to her registered pension scheme and before she ceased to accrue benefits under the recognised overseas pension scheme other money purchase arrangement. 

The total contributions made by or in respect of Kate between 6 April 2019 and 6 April 2021 amounted to £100,000. The other money purchase relevant relievable amount is therefore £100,000.