Equalisation Payment & LTA / LTA Charge
fredboiii95
Member
I have a question about following scenario and it would be helpful to get people’s thoughts:
Client A has fixed protection 2012 (£1.8m) and they fully crystallised their 3 DB schemes in 2018 which then used 100% of their LTA.
Now in the 2023/24 tax year, they have been contacted by one of the DB scheme providers to say they have been awarded an equalisation payment for their GMP benefits which has resulted in an additional 0.50% of their LTA being used.
Would this result in 100.50% of their LTA being used and then will have an LTA charge on the excess? Even if the LTA charge has been abolished in 2023/24.
Thanks,
F
Client A has fixed protection 2012 (£1.8m) and they fully crystallised their 3 DB schemes in 2018 which then used 100% of their LTA.
Now in the 2023/24 tax year, they have been contacted by one of the DB scheme providers to say they have been awarded an equalisation payment for their GMP benefits which has resulted in an additional 0.50% of their LTA being used.
Would this result in 100.50% of their LTA being used and then will have an LTA charge on the excess? Even if the LTA charge has been abolished in 2023/24.
Thanks,
F