Finance Act 2024

Availability of member’s overseas transfer allowanceU.K.

[F1127A(1)This paragraph applies where—

(a)one or more benefit crystallisation events within the meaning of Part 4 of FA 2004 occurred in relation to an individual before 6 April 2024, and

(b)a transfer of the kind mentioned in section 244IA(1)(a) of FA 2004 is made in relation to the individual on or after that date.

(2)Where the individual’s [F2adjusted] lifetime allowance previously-used amount is equal to or greater than the individual’s lifetime allowance, none of the individual’s overseas transfer allowance is available on the making of the transfer.

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

(a)the amount of that allowance that is available in accordance with section 244IC of FA 2004 on the making of the transfer, less

(b)the individual’s [F3adjusted] lifetime allowance previously-used amount,

or, if that produces a negative result, nil.

[F4(4)In this paragraph “adjusted lifetime allowance previously-used amount” means—

Formula

where—

  • A is the lifetime allowance previously-used amount;

  • B is the aggregate of any amounts included in A that are attributable to the occurrence, before 6 April 2024, of benefit crystallisation event 1.]]

Textual Amendments

F1Sch. 9 para. 127A and cross-heading inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(12)

F2Word in Sch. 9 para. 127A(2) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(4)(a)

F3Word in Sch. 9 para. 127A(3)(b) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(4)(b)

F4Sch. 9 para. 127A(4) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(4)(c)