xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"

Part 4U.K.Pension schemes etc

Modifications etc. (not altering text)

C7Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)

C9Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

C10Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)

C11Pt. 4 applied (with modifications) (with application in accordance with Sch. 22 para. 1 of the amending Act) by Finance Act 2013 (c. 29), Sch. 22 para. 1(2)

C12Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)

C13Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)

C14Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 1

C15Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 9(2)

Chapter 6U.K.Schemes that are not registered pension schemes

Modifications etc. (not altering text)

[F1Non-UK schemes: the overseas transfer chargeU.K.

Textual Amendments

F1Ss. 244A-244N and cross-heading inserted (with effect in accordance with Sch. 4 para. 25 of the amending Act) by Finance Act 2017 (c. 10), Sch. 4 para. 11

F2244AOverseas transfer chargeU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2Ss. 244AA-244AC substituted for s. 244A (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 45, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

[F2244AAOverseas transfer charge: introductionU.K.

A charge to income tax, to be known as the overseas transfer charge, arises under the following sections—

(a) section 244AC (overseas transfer charge: transfers where no exclusion applies);

(b) section 244IA (overseas transfer charge: transfers exceeding available allowance).

Textual Amendments

F2Ss. 244AA-244AC substituted for s. 244A (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 45, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244ABOverseas transfer charge: interpretationU.K.

(1)In this section and in sections 244AC to 244N—

(2)For the purposes of the definition of “relieved relevant non-UK scheme transfer”—

(a)a transfer is “a block transfer” in relation to a member of a pension scheme if it involves the transfer, in a single transaction, of all the sums and assets held for the purposes of, or representing accrued rights under, the arrangements under the scheme which relate to the member and at least one other member of the scheme;

(b)an individual is “a relieved member” of a relieved relevant non-UK scheme if—

(i)any of the contributions in respect of which relief has been given as mentioned in paragraph (a) or (b) of the definition of “relevant non-UK scheme” in paragraph 1(5) of Schedule 34 were contributions paid by or on behalf of, or in respect of, the individual, or

(ii)the individual is the member, or one of the members, who has been exempt from liability to tax as mentioned in paragraph (c) of that definition.

(3)Where, apart from this subsection, there would be different original transfers for different parts of an onward transfer, each such part of the onward transfer is to be treated as a separate onward transfer for the purposes of this section and sections 244AC to 244N.

Textual Amendments

F2Ss. 244AA-244AC substituted for s. 244A (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 45, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244ACOverseas transfer charge: transfers where no exclusion appliesU.K.

(1)The overseas transfer charge arises where—

(a)a transfer within subsection (2) is made to a QROPS, and

(b)the transfer is not excluded from the charge by or under any of sections 244B to 244H.

(2)A transfer to a QROPS is within this subsection if it is—

(a)a recognised transfer,

(b)a relieved relevant non-UK scheme transfer, or

(c)an onward transfer that is made during the relevant period for the original transfer.

(3)Sections 244B to 244H are subject to section 244I (circumstances in which exclusions do not apply).]

Textual Amendments

F2Ss. 244AA-244AC substituted for s. 244A (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 45, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244BExclusion: member and receiving scheme in same countryU.K.

(1)A recognised transfer to a QROPS [F3or a relieved relevant non-UK scheme transfer] is excluded from the overseas transfer charge [F4under section 244AC] if during the relevant period—

(a)the member is resident in the country or territory in which the QROPS [F5to which the transfer is made] is established, and

(b)there is no onward transfer—

(i)for which the recognised transfer is the original transfer [F6or relieved relevant non-UK scheme transfer], and

(ii)which is not excluded from the charge.

(2)If the member is resident in that country or territory at the time of the transfer mentioned in subsection (1), it is to be assumed for the purposes of subsection (1) that the member will be resident in that country or territory during the relevant period; but if, at a time before the end of the relevant period, the transfer ceases to be excluded by subsection (1) otherwise than by reason of the member's death—

(a)that assumption is from that time no longer to be made, and

(b)the charge on the transfer is treated as charged at that time.

(3)An onward transfer to a QROPS (“transfer A”) is excluded from the overseas transfer charge [F7under section 244AC] if during so much of the relevant period as is after the time of transfer A—

(a)the member is resident in the country or territory in which the QROPS is established, and

(b)there is no subsequent onward transfer that—

(i)is of sums and assets which, in whole or part, directly or indirectly derive from those transferred by transfer A, and

(ii)is not excluded from the charge.

(4)If the member is resident in that country or territory at the time of transfer A, it is to be assumed for the purposes of subsection (3) that the member will be resident in that country or territory during so much of the relevant period as is after the time of transfer A; but if, at a time before the end of the relevant period, the transfer ceases to be excluded by subsection (3) otherwise than by reason of the member's death—

(a)that assumption is from that time no longer to be made, and

(b)the charge on transfer A is treated as charged at that time.

Textual Amendments

F3Words in s. 244B(1) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 46(2)(a)(i), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F4Words in s. 244B(1) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 46(2)(a)(ii), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F5Words in s. 244B(1)(a) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 46(2)(b), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F6Words in s. 244B(1)(b)(i) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 46(2)(c), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F7Words in s. 244B(3) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 46(3), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244CExclusion: [F8receiving scheme in EEA state [F9or Gibraltar], and member resident in UK or EEA state]U.K.

(1)This section applies to a transfer to a QROPS established in an EEA state [F10or Gibraltar].

(2)If the transfer is a recognised transfer [F11or a relieved relevant non-UK scheme transfer], the transfer is excluded from the overseas transfer charge [F12under section 244AC] if during the relevant period—

(a)the member is resident in [F13a relevant territory] (whether or not the [F14same relevant territory] throughout that period), and

(b)there is no onward transfer—

(i)for which the recognised transfer [F15or relieved relevant non-UK scheme transfer] is the original transfer, and

(ii)which is not excluded from the charge.

(3)If the member is resident in [F13a relevant territory] at the time of the recognised transfer [F16or relieved relevant non-UK scheme transfer] mentioned in subsection (2), it is to be assumed for the purposes of this section that the member will be resident in [F13a relevant territory] during the relevant period; but if, at a time before the end of the relevant period, the transfer ceases to be excluded by subsection (2) otherwise than by reason of the member's death—

(a)that assumption is from that time no longer to be made, and

(b)the charge on the transfer is treated as charged at that time.

(4)If the transfer is an onward transfer (“transfer B”), the transfer is excluded from the overseas transfer charge [F17under section 244AC] if during so much of the relevant period as is after the time of the onward transfer—

(a)the member is resident in [F13a relevant territory] (whether or not the [F18same relevant territory] at all those times), and

(b)there is no subsequent onward transfer that—

(i)is of sums and assets which, in whole or part, directly or indirectly derive from those transferred by transfer B, and

(ii)is not excluded from the charge.

(5)If the member is resident in [F13a relevant territory] at the time of transfer B, it is to be assumed for the purposes of subsection (4) that the member will be resident in [F13a relevant territory] during so much of the relevant period as is after the time of transfer B; but if, at a time before the end of the relevant period, the transfer ceases to be excluded by subsection (4) otherwise than by reason of the member's death—

(a)that assumption is from that time no longer to be made, and

(b)the charge on transfer B is treated as charged at that time.

[F19(6)In this section “relevant territory” means the United Kingdom or an EEA state.]

Textual Amendments

F11Words in s. 244C(2) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 47(2)(a)(i), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F12Words in s. 244C(2) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 47(2)(a)(ii), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F15Words in s. 244C(2)(b)(i) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 47(2)(b), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F16Words in s. 244C(3) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 47(3), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F17Words in s. 244C(4) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 47(4), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244DExclusion: receiving scheme is an occupational pension schemeU.K.

A transfer to a QROPS is excluded from the overseas transfer charge [F20under section 244AC] if—

(a)the QROPS is an occupational pension scheme, and

(b)when the transfer is made, the member is an employee of a sponsoring employer of the QROPS.

Textual Amendments

F20Words in . 244D inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 48, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244EExclusion: receiving scheme set up by international organisationU.K.

(1)A transfer to a QROPS is excluded from the overseas transfer charge [F21under section 244AC] if—

(a)the QROPS is established by an international organisation and has effect so as to provide benefits for, or in respect of, past service as an employee of the organisation, and

(b)when the transfer is made, the member is an employee of the organisation.

(2)In this section “international organisation” means an organisation to which section 1 of the International Organisations Act 1968 applies by virtue of an Order in Council under subsection (1) of that section.

Textual Amendments

F21Words in . 244E(1) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 49, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244FExclusion: receiving scheme is an overseas public service schemeU.K.

(1)A transfer to a QROPS is excluded from the overseas transfer charge [F22under section 244AC] if—

(a)the QROPS is an overseas public service pension scheme, and

(b)when the transfer is made, the member is an employee of an employer that participates in the scheme.

(2)A QROPS is an “overseas public service pension scheme” for the purposes of this section if—

(a)either—

(i)it is established by or under the law of the country or territory in which it is established, or

(ii)it is approved by the government of that country or territory, and

(b)it is established solely for the purpose of providing benefits to individuals for or in respect of services rendered to—

(i)that country or territory, or

(ii)any political subdivision or local authority of that country or territory.

(3)For the purposes of this section, an employer participates in a QROPS that is an overseas public service pension scheme if the scheme has effect so as to provide benefits to or in respect of any or all of the employees of the employer in respect of their employment by the employer.

Textual Amendments

F22Words in . 244F(1) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 50, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244GExclusions: avoidance of double charge, and transitional protectionsU.K.

(1)A recognised transfer to a QROPS is excluded from the overseas transfer charge if it is made in execution of a request made before 9 March 2017.

(2)An onward transfer (“the current onward transfer”) is excluded from the overseas transfer charge [F23under section 244AC] if—

(a)the charge has been paid on the original transfer and the amount paid is not repayable, or

(b)the charge has been paid on an onward transfer (“the earlier onward transfer”) in respect of which the conditions in subsection (4) are met and the amount paid is not repayable, or

(c)the original transfer was made before 9 March 2017, or

(d)the original transfer was made on or after 9 March 2017 in execution of a request made before 9 March 2017.

(3)An onward transfer is excluded from the overseas transfer charge [F24under section 244AC] so far as the transfer is made otherwise than out of the member's ring-fenced transfer funds under the scheme from which the onward transfer is made.

(4)The conditions mentioned in subsection (2)(b) are—

(a)that the earlier onward transfer was made before the current onward transfer,

(b)that the earlier onward transfer was made after the original transfer, and

(c)that all the sums and assets transferred by the current onward transfer directly or indirectly derive from those transferred by the earlier onward transfer.

[F25(5)An onward transfer is excluded from the overseas transfer charge under section 244AC where—

(a)the overseas transfer charge under section 244IA(1) arose in relation to the original transfer, and

(b)none of the member’s overseas transfer allowance was available on the making of the original transfer.]

Textual Amendments

F23Words in s. 244G(2) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 51(2), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F24Words in s. 244G(3) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 51(3), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F25S. 244G(5) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 51(4), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244HPower to provide for further exclusionsU.K.

The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision for a recognised transfer to a QROPS, [F26a relieved relevant non-UK scheme transfer or an onward transfer] to be excluded from the overseas transfer charge [F27under section 244AC] if the transfer is of a description specified in the regulations.

Textual Amendments

F26Words in . 244H substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 52(a), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F27Words in s. 244H inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 52(b), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244ICircumstances in which exclusions do not applyU.K.

(1)Subsection (2) applies if a recognised transfer to a QROPS, [F28a relieved relevant non-UK scheme transfer or an onward transfer] would (but for this section) be excluded from the overseas transfer charge [F29under section 244AC] by any of sections 244B to 244F.

(2)The transfer is not excluded from the charge if the member has, in connection with the transfer, failed to comply with the relevant information regulation.

(3)In subsection (2) “the relevant information regulation” means whichever of the following is applicable—

(a)regulation 11BA of the Registered Pension Schemes (Provision of Information) Regulations 2006 (S.I. 2006/567), or any regulation having effect in place of any of that regulation, as (in either case) from time to time amended, and

(b)regulation 3AE of the Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 (S.I. 2006/208), or any regulation having effect in place of any of that regulation, as (in either case) from time to time amended.

Textual Amendments

F28Words in s. 244I(1) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 53(a), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F29Words in s. 244I(1) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 53(b), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

[F30244IAOverseas transfer charge: transfers exceeding available allowanceU.K.

(1)The overseas transfer charge arises where—

(a)a transfer to a QROPS is made that is—

(i)within section 244AC(2)(a) or (b), or

(ii)an onward transfer within section 244AC(2)(c) in relation to which the original transfer is a transfer within paragraph (b) of the definition of “original transfer” (see section 244AB(1)),

(b)the transfer is excluded from the charge under section 244AC by or under any of sections 244B to 244H, and

(c)the transferred value (determined in accordance with section 244K) exceeds the amount of the member’s overseas transfer allowance that is available on the making of the transfer.

(2)The overseas transfer charge also arises where—

(a)a transfer of the kind mentioned in subsection (1)(a) is made to a QROPS,

(b)a charge under section 244AC (“the original charge”) arises in relation to the transfer,

(c)a person liable to the original charge becomes entitled under section 244M to a repayment in respect of the original charge, and

(d)the transferred value (determined in accordance with section 244K) exceeds the amount of the member’s overseas transfer allowance that is available on the making of the transfer.

Textual Amendments

F30Ss. 244IA-244IC inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 54, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244IBMember’s overseas transfer allowanceU.K.

A member’s “overseas transfer allowance” is an amount equal to the member’s lump sum and death benefit allowance.

Textual Amendments

F30Ss. 244IA-244IC inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 54, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244ICAvailability of member’s overseas transfer allowanceU.K.

(1)This section is about the availability of a member’s overseas transfer allowance on the making of a transfer of the kind mentioned in section 244IA(1)(a) (“the current overseas transfer”).

(2)If no transfer of the kind mentioned in section 244IA(1)(a) has been made in relation to the member before the current overseas transfer, the whole of the member’s overseas transfer allowance is available.

(3)Otherwise, the amount of the member’s overseas transfer allowance that is available is—

(a)so much of that allowance as is left after deducting the previously-used amount, or

(b)if none is left after deducting that amount, nil.

(4)For this purpose “the previously-used amount” is the aggregate of the transferred value (determined in accordance with section 244K) of each transfer (if any) of the kind mentioned in section 244IA(1)(a) that has been made in relation to the member before the current overseas transfer.

(5)A reference in this section to a transfer of the kind mentioned in section 244IA(1)(a) is to a transfer made on or after 6 April 2024.]

Textual Amendments

F30Ss. 244IA-244IC inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 54, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

[F31244IDInformation to be provided by relieved relevant non-UK scheme on block transferU.K.

(1)Subsection (2) applies where—

(a)a relieved relevant non-UK scheme (“the transferring scheme”) makes a transfer to a QROPS, and

(b)the transfer is a block transfer in relation to any member of the transferring scheme.

(2)The scheme manager of the transferring scheme must, before the end of the period of 91 days beginning with the day of the transfer, provide the scheme manager of the QROPS with a statement stating—

(a)that the transfer is a block transfer and, accordingly, that an onward transfer subsequently made by the QROPS of sums or assets derived from those transferred by the block transfer may give rise to an overseas transfer charge under section 244IA,

(b)the date of the transfer, and

(c)the transferred value of the transfer (determined in accordance with section 244K).

(3)Section 244AB(2)(a) (meaning of “block transfer”) applies for the purposes of this section.]

Textual Amendments

F31S. 244ID inserted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1, 3(2)

244JPersons liable to chargeU.K.

(1)In the case of a recognised transfer to a QROPS, the persons liable to the overseas transfer charge are—

(a)the scheme administrator of the registered pension scheme from which the transfer is made, and

(b)the member,

and their liability is joint and several.

[F32(1A)In the case of a relieved relevant non-UK scheme transfer, the member is liable to the overseas transfer charge.]

(2)In the case of an onward transfer, the persons liable to the overseas transfer charge are—

(a)the scheme manager of the QROPS, or former QROPS, from which the transfer is made, and

(b)the member,

and their liability is joint and several.

(3)Subsections (1) and (2) are subject to subsection (4), and subsections (2) and (4) are subject to subsection (5).

(4)If a [F33recognised transfer to a QROPS or an onward transfer] is one required by section 244B or 244C to be initially assumed to be excluded by that section but an event occurring before the end of the relevant period means that the [F33recognised transfer to a QROPS or an onward transfer] is not so excluded, the persons liable to the overseas transfer charge in the case of the [F33recognised transfer to a QROPS or an onward transfer] are—

(a)the scheme manager of any QROPS, or former QROPS, under which the member has, at the time of the event, ring-fenced transfer funds in which any of the sums and assets referred to in section 244K(6) in the case of the transfer are represented, and

(b)the member,

and their liability is joint and several.

(5)The scheme manager of a former QROPS is liable to the overseas transfer charge in the case of a transfer (“the transfer concerned”) only if the former QROPS—

(a)was a QROPS when a relevant inward transfer was made, and

(b)where a relevant inward transfer was made before 9 March 2017, was a QROPS at the start of 9 March 2017;

and here “relevant inward transfer” means a recognised or onwards transfer to the former QROPS (at a time when it was a QROPS) of sums and assets which, to any extent, are represented by sums or assets transferred by the transfer concerned.

(6)A person is liable to the overseas transfer charge whether or not—

(a)that person, and

(b)any other person who is liable to the charge,

are resident or domiciled in the United Kingdom.

Textual Amendments

F32S. 244J(1A) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 55(2), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F33Words in s. 244J(4) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 55(3), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

[F34244JAAmount of chargeU.K.

(1)Where the overseas transfer charge arises under section 244AC in relation to a transfer, the charge is—

(a)in a case where the transfer is an onward transfer and the overseas transfer charge under section 244IA(1) arose in relation to the original transfer, 25% of so much of the transferred value of the original transfer as did not exceed the amount of the member’s overseas transfer allowance that was available on the making of the original transfer;

(b)in any other case, 25% of the transferred value.

(2)Where the overseas transfer charge arises under section 244IA in relation to a transfer, the charge is 25% of so much of the transferred value as exceeds the amount of the member’s overseas transfer allowance that is available on the making of the transfer.]

Textual Amendments

F34S. 244JA inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 56, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244K[F35Meaning of “transferred value”]U.K.

[F36(1A)The transferred value, in relation to a transfer within section 244AC(2), is to be determined in accordance with this section.]

(2)If the transfer is from a registered pension scheme established in the United Kingdom, the transferred value is the total of—

(a)the amount of any sums transferred, and

(b)the value of any assets transferred,

but this is subject to subsections [F37(6)] to (9).

(3)If the transfer is from a registered pension scheme established in a country or territory outside the United Kingdom, the transferred value is the total of—

(a)the amount of any sums transferred that are attributable to UK-relieved funds of the scheme, and

(b)the value of any assets transferred that are attributable to UK-relieved funds of the scheme,

but this is subject to subsections [F38(6)] to (9).

[F39(3A)If the transfer is a transfer from a relieved relevant non-UK scheme, the transferred value is the total of—

(a)the amount of any sums transferred that are attributable to the member’s UK tax-relieved fund (see paragraph 3 of Schedule 34), and

(b)the value of any assets transferred that are attributable to that fund,

but this is subject to subsections (6) to (9).]

(4)If the transfer is from a QROPS or former QROPS, the transferred value is the total of—

(a)the amount of any sums transferred that are attributable to the member's ring-fenced transfer funds under the scheme, and

(b)the value of any assets transferred that are attributable to the member's ring-fenced transfer funds under the scheme,

but this is subject to subsections [F40(6)] to (9).

F41(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)If the transfer is one initially assumed to be excluded by section 244B or 244C but an event occurring before the end of the relevant period means that the transfer is not so excluded, the sums and assets mentioned in whichever of subsections (2) to (4) is applicable include only those that at the time of the event are represented in any of the member's ring-fenced transfer funds under any QROPS or former QROPS.

(7)If the operator pays [F42a charge under section 244AC or 244IA] on the transfer and does so—

(a)otherwise than by deduction from the transfer, and

(b)out of sums and assets held for the purposes of, or representing accrued rights under, the scheme from which the transfer is made,

the transferred value is the amount [F43specified in subsection (7A)].

[F44(7A)The amount mentioned in subsection (7) is the aggregate of—

(a)the chargeable portion,

(b)the gross-up amount, and

(c)the non-chargeable portion (if any).

(7B)In subsection (7A)—

(8)If the operator pays [F45a charge under section 244AC or 244IA] on the transfer and does so by deduction from the transfer, the transferred value is the amount given by subsections (2) to (6) before the deduction.

(9)If the member pays [F46a charge under section 244AC or 244IA] on the transfer, the transferred value is the amount given by subsections (2) to (6) without any deduction for the charge.

F47(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11)In this section—

Textual Amendments

F35S. 244K heading substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 57(2), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F36S. 244K(1A) substituted for s. 244K(1) (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 57(3), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F37Word in s. 244K(2) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 57(4), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F38Word in s. 244K(3) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 57(5), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F39S. 244K(3A) inserted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 57(6), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F40Word in s. 244K(4) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 57(7), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F41S. 244K(5) omitted (for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2024 (c. 3), Sch. 9 paras. 57(8), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

F42Words in s. 244K(7) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1, 3(4)(a)

F43Words in s. 244K(7) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1, 3(4)(b)

F44S. 244K(7A)(7B) inserted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1, 3(5)

F45Words in s. 244K(8) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1, 3(6)

F46Words in s. 244K(9) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), regs. 1, 3(7)

F47S. 244K(10) omitted (for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2024 (c. 3), Sch. 9 paras. 57(8), 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244LAccounting for overseas transfer charge by scheme managersU.K.

(1)In this section “charge” means overseas transfer charge for which the scheme manager of a QROPS or former QROPS is liable.

(2)The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision for or in connection with—

(a)the payment of charge, including due dates for payment,

(b)the charging of interest on charge not paid on or before its due date,

(c)notification by the scheme manager of errors in information provided by the scheme manager to the Commissioners in connection with charge or the scheme manager's liability for overseas transfer charge,

(d)repayments to scheme managers under section 244M of amounts paid by way of charge, and

(e)the making of assessments, repayments or adjustments in cases where the correct amount of charge has not been paid by the due date for payment of the charge.

(3)The regulations may, in particular—

(a)modify the operation of any provision of the Tax Acts, or

(b)provide for the application of any provision of the Tax Acts (with or without modification).

244MRepayments of charge on subsequent excluding eventsU.K.

(1)This section applies if—

(a)[F48the overseas transfer charge under section 244AC] arose on a transfer at the time the transfer was made, and

(b)at a time during the relevant period for the transfer, circumstances arise such that, had those circumstances existed at the time the transfer was made, the transfer would at the time it was made have been excluded from the charge by sections 244B to 244F or under section 244H.

(2)Any amount paid in respect of charge on the transfer is to be repaid by the Commissioners for Her Majesty's Revenue and Customs so far as not already repaid.

(3)Subsection (2) does not give rise to entitlement to repayment of, or cancellation of liabilities to, interest or penalties in respect of late payment of charge on the transfer.

(4)Repayment under this section to the scheme administrator of a registered pension scheme, or the scheme manager of a QROPS or former QROPS, is conditional on prior compliance with any requirements to give information to the Commissioners, about the circumstances in which the right to the repayment arises, that are imposed on the prospective recipient under section 169 or 251 (but repayment is not conditional on compliance with any time limits so imposed for compliance with any such requirements).

(5)Repayment under this section is not a relievable pension contribution.

(6)Repayment under this section to the member is conditional on making a claim, and such a claim must be made no later than one year after the end of the relevant period for the transfer concerned.

(7)The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision for or in connection with claims or repayments under this section, including provision—

(a)requiring claims,

(b)about who may claim,

(c)imposing conditions for making claims, including conditions about time limits,

(d)as to additional circumstances in which repayments may be made,

(e)modifying the operation of any provision of the Tax Acts, or

(f)applying any provision of the Tax Acts (with or without modifications).

Textual Amendments

F48Words in s. 244M(1)(a) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 58, 124 (with Sch. 9 paras. 125-132A) (as amended by S.I. 2024/356, regs. 1, 4)

244NDischarge of liability of scheme administrator or managerU.K.

(1)In this section “operator” means—

(a)the scheme administrator of a registered pension scheme, or

(b)the scheme manager of a QROPS or former QROPS.

(2)If an operator is liable under section 244J, the operator may apply to an officer of Revenue and Customs for the discharge of the operator's liability on the following ground.

(3)The ground is that—

(a)the operator reasonably believed that there was no liability to the overseas transfer charge on the transfer concerned, and

(b)in all the circumstances of the case, it would not be just and reasonable for the operator to be liable to the charge on the transfer.

(4)On receiving an application under subsection (2), an officer of Revenue and Customs must decide whether to discharge the operator's liability.

(5)An officer of Revenue and Customs must notify the operator of the decision on the application.

(6)The discharge of the operator's liability does not affect the liability of any other person to overseas transfer charge on the transfer concerned.

(7)The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision supplementing this section, including provision for time limits for making an application under this section.]