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Client with PTFC & Fixed Protection 2014

naoleanaolea Member
in Technical stuff

Hi we have a client with protected TFC of £562k, which I believe supersedes his Fixed Protection 2014. He also has 2 smaller pensions of £7k & £9k.

Can he take the smaller pensions under small pot rules? If he were to consolidate the smaller pensions, so they exceed £10k would he need to take the TFC from this first and then the bigger one?

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Comments

  • les_cameronles_cameron Member

    If the scheme rules allow yes you could take under small pots rules. If you do then the tax free amount doesn't use LSA or LSDBA. If you consolidate you will not be able to use small pots rules and will need LSA to pay the PCLS.

    If you take the SSPTFC first then you will have 25% of the total amount crystallised taken off of the LSA - this may mean no TFC available for the consolidated small pots.

    For SSPTFC you do not need LSA to pay it but any amount over the LSDBA is taxed.

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