LTA test at 75 with more than one drawdown plan
Hello, I'm reading this article as we have a client in this situation and it states:
If someone has more than one drawdown plan at age 75, each plan is tested separately. The charge is based on the total of any increases in drawdown values, ignoring any plans that have decreased in value. There is no opportunity to mitigate any charge by offsetting a ‘loss’ on one drawdown plan with a ‘gain’ on another.
I'm struggling with the significance of testing each plan separately. What difference does it make when assessing a potential LTA charge for a client in this situation vs aggregating it?