The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006

PART 2 Application and computation of UK tax charges

Computation of a member’s UK tax-relieved fund under a relevant non-UK scheme

2.  The amount of a member’s UK tax-relieved fund under a relevant non-UK scheme is the aggregate of—

(a) the amounts which, for each tax year before that in which the computation falls to be made, would have been arrived at in relation to arrangements under the relevant non-UK scheme relating to the individual as pension input amounts under sections 230 to 238 of the Act (annual allowance) as they apply by virtue of paragraph 8 of Schedule 34 to the Act, and

(b) the amount which would be so arrived at if the period beginning with 6^th April of the tax year in which the computation falls to be made; and ending immediately before the making of the computation, were a tax year,

assuming that section 229(3) did not apply.

Computation of a member’s relevant transfer fund

3.  The amount of a member’s relevant transfer fund under a relevant non-UK scheme (that scheme being referred to here as “the RNUKS”) is the sum of—

(a) the amount crystallised by virtue of benefit crystallisation event 8 on the transfer from a UK registered scheme to the RNUKS; and

(b) so much of the member’s UK tax-relieved fund under any other relevant non-UK scheme as has been transferred to the RNUKS but has not been subject to the unauthorised payments charge; and

(c) so much of the member’s relevant transfer fund under any other relevant non-UK scheme as has been transferred to the RNUKS—

(i) without being subject to the unauthorised payments charge; and

(ii) at a time when the other relevant non-UK scheme is a recognised overseas pension scheme.

Attributing payments to particular funds under a relevant non-UK scheme

4.—(1) This regulation applies to determine to which part of a relevant non-UK scheme a payment to, or in respect of, a member is referable.

(2) It shall be assumed that—

(a) payments made by the scheme to or in respect of the member are made out of the member’s UK tax-relieved fund in priority to any other fund under that scheme; and

(b) the amount of the member’s UK tax-relieved fund is reduced by the amount paid out of the scheme.

(3) If the member’s UK tax-relieved fund is nil, or has been reduced to nil, it shall be assumed that—

(a) payments made by the scheme to or in respect of the member are made out of the relevant transfer fund in priority to any other fund under that scheme; and

(b) the amount of the relevant transfer fund is reduced by the amount paid out of the scheme.