L&G Fixed Term Retirement Plan - LTA query
LisaC
Member
Client interested in transferring £500K flexi access drawdown funds to L&G to receive a guaranteed income for 10 years plus guaranteed maturity value. He's already used 97% of LTA. How does LTA work with these plans? If he exceeds LTA assume no LTA charge anyway now and the income is taxed at marginal rate, as it was when taking from drawdown? Feel as though I'm missing something. Gave up trying to get through to L&G after 90 mins!!
Comments
A FTA is usually a very restricted drawdown plan.
So what you are doing is a drawdown to drawdown transfer and that has no LTA implications.