Lifetime Allowance Enhancement Factors

Factors are based on the value of the funds to be protected (e.g. the value of the pension) and calculated as a portion of the standard Lifetime Allowance. The result is to essentially exempt those funds from the Lifetime Allowance.

Where you have a valid Certificate from HMRC, your Lifetime Allowance is increased because you:

• acquired a pension credit under a pension sharing order on divorce before 6 April 2006,
• acquired a disqualifying pension credit under a pension sharing order on divorce after 5 April 2006,
• accrued certain benefits in a registered pension scheme during a period when you were abroad and you were not a relevant UK individual. Or if you were, it was only because you were resident in the UK at some time during the previous five tax years and you were also resident in the UK when you joined the pension scheme and you were not employed by a UK resident employer,
• transferred benefits accrued in a QROPS which have not received UK tax relief to a registered pension scheme

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