Defined Benefit Pension - Lump Sum Allowance
Paraplanner717
Member
Hi, just a quick one. If a client receives a lump sum payment from their defined benefit scheme upon the commencement of them receiving their DB pension income payments, does this lump sum count toward the person's Lump Sum Allowance?
If so, is it the exact monetary amount that the LSA is reduced by, or are there any further calculations that need to be completed?
Comments
Yes, it's a pension commencement lump sum, the monetary amount gets deducted from their LSA and LSDBA.
Nothing fancy - that's it.