Paragraph 20E F1

This paragraph applies F2... in relation to an individual where—

There is a “recognised overseas scheme transfer” if any sums or assets—

are transferred so as to become held for the purposes of, or to represent rights under, an arrangement under a registered pension scheme relating to the individual.

The arrangement specified in sub-paragraph (2)(a) or (b) is referred to in this paragraph and in paragraphs 20F and 20G as the “recognised overseas scheme arrangement”.

Chapter 15A of Part 9 of ITEPA 2003 (pension income: lump sums under registered pension schemes) has effect in relation to the individual as if the amount specified in section 637R of that Act (individual’s lump sum and death benefit allowance) were the individual’s enhanced lump sum and death benefit allowance (as determined under paragraph 20H of this Schedule).

For the purposes of paragraph 20H, a lump sum and death benefit allowance enhancement factor, determined in accordance with sub-paragraphs (5) and (6) of this paragraph, operates in relation to the individual.

The lump sum and death benefit allowance enhancement factor is the recognised overseas scheme transfer factor.

F4The recognised overseas scheme transfer factor is—

where—

• A is the aggregate of the amount of any sums transferred, and the market value of any assets transferred, on the recognised overseas scheme transfer;

• B is the relevant relievable amount (see paragraphs 20F and 20G).

• F5SLA is the standard lifetime allowance for the tax year in which the transfer took place.

In this paragraph and in paragraphs 20F and 20G “the overseas arrangement active membership period” is the period—

But if benefits ceased to accrue to or in respect of the individual under the recognised overseas scheme arrangement at a time before 5th April 2024, the overseas arrangement active membership period is to be treated as having ended at that time.

Where this paragraph applies, for the purposes of this Part a lump sum is not an uncrystallised funds pension lump sum (see paragraph 4A of Schedule 29) if F6... the amount given by the formula in sub-paragraph (10) is less than 25% of the lump sum.

The formula is—

where—

• A is—

  1. (a)

     in the case of an individual in relation to whom a relevant protection provision applies, the individual’s protected lump sum and death benefit allowance F7... F8(as specified in that provision for the purposes of paragraph 20H);

  2. (b)

     in any other case, £1,073,100;

• B is the amount that would be the previously-used amount within the meaning of section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance) if a relevant benefit crystallisation event within the meaning of that section had occurred immediately before the lump sum is paid.

A reference in this paragraph to the standard lifetime allowance for a tax year is to the standard lifetime allowance as determined under section 218, as it had effect for that tax year.

In this paragraph “relevant protection provision” has the meaning given in paragraph 20H(3).