Lifetime Allowance Excess Charge - Nominating who pays?
We have a client that may now be utilising 100% of her LTA allowance (she has fixed protection 16 so £1.25M). She also has a small NHS scheme circa £3k per annum plus approx £10K lump sum which will become payable in around 3 years at 60.
When the NHS pension is tested at 60 assuming she has used 100% of her LTA, this will obviously breach the LTA and the excess will be chargeable accordingly. Is the client able to tell the NHS that she would like to pay the excess LTA charge via her SIPP, rather than a possible reduction in pension from the NHS. I just wondered if this was an option?
Anyone had anything similar?