Finance Act 2024

Amendments of Part 4 of FA 2004

54 After section 244I insert—

“244IA Overseas transfer charge: transfers exceeding available allowance

(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.

244IB Member’s overseas transfer allowance

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

244IC Availability of member’s overseas transfer allowance

(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.”