The amendment seeks to increase the enhanced lifetime allowance available to relevant overseas individuals who have other money purchase arrangements. Such individuals are entitled to a lifetime allowance enhancement factor, which is applied to the standard lifetime allowance to arrive at the increased allowance. The factor is based on the amount of contributions paid during the period when the individual was non-resident. That is a straightforward and simple calculation. The amendment seeks to introduce an additional element to the calculation to bring in the investment build-up on the contributions.
In many respects, the hon. Gentleman makes reasonable points. The aim may be to bring the calculation of the lifetime allowance enhancement factor for money purchase arrangements more into line with the equivalent calculation for other arrangements, such as defined benefit arrangements. However, defined benefit arrangements cannot be calculated by reference to contributions because, in a defined benefit scheme, it is often impossible to identify the contributions made in respect of a particular individual, so there would be different rules according to the different ways in which different types of scheme operate. The amendment would have a disproportionately complicating effect on the calculation and is not precise enough to be workable. It is not clear how that part of the value of the individual's benefits would be calculated.
As I have said, we must help taxpayers and schemes by providing clear and unambiguous valuation rules whenever possible. Our approach is an example of the clarity that people desire, and I urge the hon. Gentleman to withdraw the amendment.