Please read the international protection certificate notes for more details

The lifetime allowance enhancement factor can be applied to the Standard Lifetime Allowance (SLA) when you come to take benefits. This will give you a lifetime allowance higher than the standard amount. For example, you might have an enhancement factor of 0.5 as a consequence of a transfer made from a recognised overseas pension scheme in 2006-07 tax year.

Your personal lifetime allowance will be the SLA + (SLA x enhancement factor). For example, this will be £2,250,000 (£1,500,000 + (£1,500,000 x 0.5)), or in other words, factor 1.5 of the SLA in 2006-07. So, if you come to take benefits in the tax year 2006-07 valued at, for example, £1,950,000 (or a factor of 1.3 of the SLA, you will have an unused lifetime allowance of £300,000 in 2006-07.

For the tax years after 2006-07, the SLA will be increased. Although your enhancement factor will stay the same, the effect from applying the above calculations will be that your personal lifetime allowance will increase in proportion.

The enhancement factors will be shown separately if your Section 221 entitlement arises from a scheme with multiple arrangements.