PTM175220 - Lump sum and lump sum and death benefit allowance: Enhancement factors: Oversea transfer factor: Relevant relievable amount for a cash balance arrangement
Source: gov.uk (2025-11-11)


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 (https://webarchive.nationalarchives.gov.uk/ukgwa/20240305022829/https:/www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm090000). If you are looking for information about the principles of lifetime allowance and benefit crystallisation events please see these pages of The National Archives (https://webarchive.nationalarchives.gov.uk/ukgwa/20240305022836/https:/www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm080000).

If you are looking for information about enhancement factors pre-April 2024 please see The National Archive (https://webarchive.nationalarchives.gov.uk/ukgwa/20240305085920/https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm095000). The below guidance applies for individuals applying for an enhancement factor from 6 April 2024 to 5 April 2025.

How to calculate the relevant relievable amount for a cash balance arrangement

Paragraph 20F(3)-(5) Schedule 36 Finance Act 2004 Where the individual’s arrangement under their recognised overseas pension scheme is a cash balance arrangement, the cash balance relevant relievable amount is established as follows: 1. Obtain the value of the individual’s rights in the cash balance arrangement as at 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 cashe balance arrangement, and
- 6 April 2006
2. Obtain the value of the individual’s rights in the cash balance arrangement as at 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 cash balance arrangement, and
- 5 April 2024
3. Deduct the result of step 1 from the result of step 2. 4. If the individual has not been a relevant overseas individual during another part of the overseas arrangement active membership period relating to the same cash balance arrangement, then an amount calculated in the same way in respect of each other part-period should be added to the amount at 3. The individual’s rights under the cash balance arrangement is the amount which would be available to provide benefits to or in respect of the individual if they became entitled to them at the applicable date (as determined under step 1 or step 2 above). The rights are established using the valuation assumptions set out in section 277 Finance Act 2004. They are as follows:
- the individual concerned has reached any designated age as must have been reached to avoid any reduction in their benefits on account of their age, and
- their benefits should be valued on the basis that they are not physically or mentally impaired.
Example of how to calculate the relevant relievable amount for a cash balance arrangement

Jonathan transferred £500,000 from his recognised overseas pension scheme that was a cash balance arrangement to a registered pension scheme on 8 October 2021. Jonathan began to accrue benefits under his cash balance arrangement on 10 April 2018. He became resident in the UK on 17 June 2020, so became someone who is not a relevant overseas individual with effect from 6 April 2020. The value of his rights in his cash balance arrangement at 6 April 2020 amounted to £250,000. The value of his rights in his cash balance arrangement immediately before the transfer to his registered pension scheme amounted to £400,000. At that date he was still someone who is not a relevant overseas individual and was still accruing benefits under the cash balance arrangement. The cash balance relevant relievable amount is therefore £150,000 (£400,000 - £250,000).