Transitional Tax Free Amount - specific case
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Hi everyone
I'm hoping someone can help me to clarify how DB benefits taken pre 5/4/24 (but not before A Day) are valued for LSA/LSBDBA.
The client took the following benefits from their 1995 Section NHS pension in March 2021:
Tax-free lump sum: £18,897.54
Income: £6,299.18 per annum.
LTA % used is 10.7% (Individual Protection 2014 applies at £1,358,295).
The current provider is telling us that this equates to £36,334.39 LSA used.
This figure has been calculated by multiplying £1,358,295 x 10.7% and then x 25%.
- Is that the right process for valuing DB benefits taken pre 5/4/2024? Therefore the LSA used figure is correct?
Thank you for any help!
Comments
Thank you! So for the TTFAC, would we just use the actual monetary amount of the tax-free cash taken? ie £18,897.54?
Send the proof of benefits taken and you'll get the certificate back.
Thank you so much.