We seem to be having a lot of discussions with clients surrounding the trade off between LTA tax charge and future IHT liabilities.

Does any one use any tools or calculators to demonstrate this to clients. Which could illustrate phasing drawdown, leaving uncrystallised, crystallising up to LTA etc

Thank you


  • Voyant or Cash Calc?

  • Yep Voyant does this and we have looked at this on many cases. Also with a view to taking more from the pension but being taxed on this from an income perspective but reducing the LTA charge. To be honest, there is not usually much in it and we badge it as a nice problem to have/a tax on success!

  • I agree with Nathan on this. I have had a few cases. It's always client specific ie there isn't a golden rule, and ultimately it can take a lot of work to calculate the different outcomes, all of which tend to do little more than move the tax liability from one regime to another.

    Benjamin Fabi 
  • Im having such an issue with the adviser to actually use a cash flow modeller!

    Thanks for your help though everyone

  • ^ it's a slow process, for some, but everyone will be cash-flowing before too long.

    FYI cashcalc isn't ideal for this, they can't handle tax positions. But this is something they've announced to incorporate for 2020. At which point, assume it works as I think it will, Voyant will need to cut their prices!

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