benjaminfabi
About
- Username
- benjaminfabi
- Joined
- Visits
- 3,246
- Last Active
- Roles
- Moderator
Comments
-
Ignoring the breach issue, my general stance on operational management of pension funds when the LSA has been used is this (assuming the platform allows it): * If available LSA >25% of funds in the pension then crystallise the whole pot * I…
-
@Wildparaplanner said: Thanks, the clients are of the opinion that they're paying a premium for a policy which potentially won't pay out in full, so they're throwing money away. Whilst I get your points around the group scheme, I think it's tryin…
-
It will depend but each will have a claim form that requires disclosure of the existence of other income being received/claimed. Wordings will usually be along the lines of 'we will reduce what we pay you by the amount of any other benefits you a…
-
I think if the pension with protection accepts transfers in, you can in fact transfer in all but £1.073m of the other pensions to that one and then take the standard LSA from the £1.073m and the balance from the rest. The maximum LSA that can be …
-
If you use a pension fund to buy a secure income product, and you include a guarantee on what benefit is paid to someone else when you die, that is a separate contract attached to the annuity, with its own market value (i.e. the amount the annuity i…
-
It's because that is what the rules are. Basically, you can't have death benefits on pensions bought using death benefits.
-
Why do they want to move it to a bond? This would cross the threshold for specialist advice in my book, at which point any possible benefit to actual or perceived simplification of the investment and tax may be vastly outweighed by unintended com…
-
This thread was originally talking about 'double dipping' on RAS and VCT relief for the same taxable income. The answer to that question depends on what @les_cameron concluded from his pondering. In your example your client still has an income ta…
-
@sch0501 said: Surely this can't be allowed because else what's stopping a husband and wife taking their tax-free cash and contributing to each other's pensions?? This would be subject to the recycling tests because you would be receiving…
-
Gains on the sale of gilts are not chargeable gains. No personal liability to capital gains tax. No company liability to corporation tax. https://www.gov.uk/guidance/gilt-edged-securities-exempt-from-capital-gains-tax https://www.legislation…
-
@Wildparaplanner said: Those Innovative Finance ISA numbers really do strike home how terrible a solution it is! IF ISA was nothing more than a mechanism to get p2p lending into ISAs when it was looking like becoming a 'mainstream' saving…
-
@les_cameron does that mean you don't need LSDBA to pay tax-free cash with an EP certificate?
-
Yes I did comment somewhere else that this wasn't really a new thing, just a reinstatement of previous restrictions on cash in S&S ISAs. Pretty sure Osborne threw that lot out. But the entire policy is mad to start with: * Most under 65s…
-
How is this entire cash ISA limit not clear and obvious age discrimination?
-
Hi, Because LSDBA is the value of rights in April 2024, and they'll need to evidence that the member has enough LSDBA remaining to cover the payment of the tax free lump sum. Only the death benefit bit of LSDBA falls off at age 75. That would …
-
You'd need to ask the scheme administrator. Them knowing the person isn't relevant if the scheme is paying an 'arm's length' commercial rate to a professional for the work being done. But a RICS Red Book valuation is related to property, not private…
-
My understanding is that: * You need LSDBA to receive a SALS. * It will use up LSDBA 1:1 and LSA at 0.25:1 * But you don't need LSA to receive a SALS. * What would happen is if you had, say a £250,000 SALS and a £1m SIPP, and you took t…
-
Here's what I think... If the scheme specific protected tax free cash in an uncrystallised scheme, then it's available even with no LSA, but would use up LSDBA. If it was 100% of the fund at A-Day, then it isn't a SSPTFC sum, but it's a Stand …
-
To give HMRC its due, the annuity probate calculator does state: This calculator will estimate the open market value of the guaranteed annuity payments which are to be paid to the estate in straightforward cases. HMRC considers that the values p…
-
Hi, From what I understand... A joint life annuity has no IHT value on first death (assuming in good health when established). Value protected annuity the protected value on death is the amount in the estate. Guaranteed period annuity the p…
-
Thanks, and noted on terminology! I'd used them synonymously but I suppose there is a technical difference. In theory, however, HMRC still assume someone is not in poor health if they survive two years from the annuity purchase, even if they've r…
-
Okay thanks. So let's consider this scenario: * Annuity purchased for £200k, providing £12,000 level income(monthly in arrears) with a 20 yr guaranteed period. * Annuitant dies 35 days later. * HMRC probate valuation calculator assuming death…
-
I always ask for submitted tax returns and pension contribution histories when I do taper calculations. Clients frequently don't know what of the income is taxable (gross rent vs taxable rental profit being a common example), and in this case the sh…
-
@Wildparaplanner thanks for following up this is very useful!
-
I think both your scenarios are right but there's a step between them that deleted the first one on 6/4/2024. i.e. today you're left with an LSA of £0. And, as I have commonly seen - a hard query with someone about why a small crystallisation was…
-
Hi, Any pre-2006 pensions in payment, including capped DD, were tested at the first BCE that took place after A-Day. That uncrystallised fund that got tested at age 75 (2019) will have triggered a BCE on the drawdown fund under the rules in fo…
-
The client will get tax relief on the contribution whether he has carry forward or not. Having carry forward to cover the excess £5k will stop the annual allowance tax charge applying later in the tax calculation to claw it back. So yes, the clie…
-
No worries. This topic is always difficult because it's hard to bring everything down to the two simple transactions: * Has money come out of a pension as PCLS. * Has money gone into a pension as a contribution. Nothing else around why the…
-
That's irrelevant. The test is related to whether tax free cash has been taken from my pension and whether pension contributions have been made to my pension. And then, whether the contribution/s are allowable based on the recycling tests. Con…
-
In which case if you recommend this strategy and the quantitative tests are met, it's going to be pcls recycling. Unless you take from Mr now and fund Mrs from the company, or vice versa. You can only recycle into a pension you are the member o…