Pension Term Assurance and the LTA

Jona

Hopefully a quick one.

Is the payment of death benefits from a PTA policy a BCE?

Any resource / link to evidence your view would be appreciated.

I've looked in HMRC's PTM and cannot find reference to pension term assurance under the authorised lump sums sections, so think it would not be a BCE....?

Thanks
Jona

Jona

The Pru believe this to be a relevant lump sum....

"This will be a relevant lump sum death benefit and will be tested against the lifetime allowance using BCE 7, see information here –

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm088680"

Any alternative views?

benjaminfabi

I would work on the basis that if the premiums are eligible for tax relief then the benefit will be treated as a BCE

Gustavo_Fring

Hello, linked to this, are premiums for a pension term assurance contract included as using up a client's annual allowance?

My hunch is yes but despite a comprehensive google, I can't find confirmation anywhere.