NEW LTA Rules
We have a client who has £1.5mil LTA protection.
Has as Taken DB benefits of over £75k (income) and tax free cash of £225k in 2018 and paid a lifetime allowance charge on his income.
He also has a DC worth around £900k. Under the new rules, does he have an entitlement to a further £150k Tax free cash (£375-225k)? and are there any other implications of him crystallising.
we just cant seem to interpret the new rules when it comes to this scenario. He has no LTA left, but does he now have CLA now? is there benefit to crystallising all, or just crystallising for the TFC.
thanks in advance for any help.