les_cameron
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- les_cameron
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It might work - or they could just give it away and hope they survive 7 years! Unless using an exemption to give it away. And they have to tell HMRC on death if they made contributions in the 2 years before death
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Hi Yes that wasn't clear enough in hindsight, the point being made was there is no permitted maximum. There's two things at play here. Yes you need a £1 to be able to pay it. But the lump sum does not have a limit - there's no permitted max…
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You'll not find it explicitly. So you have to decide what the law says the contribution amount is generally. FA 2004 192 Relief at source (1) Where an individual is entitled to be given relief in accordance with this section in respect of the pa…
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They will need to find a provider willing to accept a contribution that does not get tax relief. You could pay in what you liked. The AA only picks up employer contributions post 75. The $64,000 question is why you would want to turn capital t…
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You could put the info in our tax relief modeller and keep increasing pension income until you get the amount you want. Need to remember you will then push the dividends into higher rate tax. And factor in the tax free cash - trial and error! …
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Estates impact too https://www.mandg.com/wealth/adviser-services/tech-matters/government/spring-budget-2023#trusts-and-estates Note we believe the tax on the £500 eventually catches up when income is paid out.
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I'm assuming it'll still be income from a furnished holiday lettings business - I don't think a change in how it's taxed changes it's status for relevant earnings. Will see what comes out though.
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Seeing a fair few ex armed forces cases like that at the moment.
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Things have moved on since 1/2 HMRC are saying you need the pre 06 TFC amounts - that's nto what the law says now but that's what they say it's going to say. The scheme that does the first BCE should give them the LTA used by the pre 06 pensio…
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No revaluation there it's straightforward add up all the tax free amounts. I would imagine more PCLS is worth it... Not that I can think of. They'll also get a better LSDBA (if required)
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https://www.professionaladviser.com/opinion/4167344/lta-abolition-brings-advisers-tax-end-twist Covered here (since this was written HMRC have said you need to be able to prove your pre a day TFC have gone based on what they have said as opposed to…
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Hi (Wildparaplanner) If they have their first benefits post April their LSA and LSDBA will be reduced by 25 x 18000 x 25% = £112,500. They will not be eligible to get a TTFAC if the actual tax free cash they got was less than the default transiti…
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The total gross amount of a personal contribution (not salary sacrifice) would reduce the threshold income - so might make the taper go away. If you don't get the threshold income below the limit you will still get the pre contribution taper as per…
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You need to add any salary/bonus sacrificed back into threshold income. The sacrificed salary is not included in adjusted income but the resultant employer contribution is. The only way to get around the taper is to get one of your incomes below…
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And proves the point - never assume beneficiary drawdown will be available even if you have nominations in place and the scheme allows beneficiary drawdown!
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It is down to the individual scheme - I don't believe there's anything fishy about allowing a non resident beneficiary. I think it's more the practicalities of being able to pay to a foreign bank account etc.
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@Wildparaplanner said: Ah that clears that up, thanks Les. As per the other post, who really cares about the LSDBA when you just use beneficiary drawdown to bypass it anyways!! Assuming the scheme allows it of course and the nominations a…
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No - both now and in the future it will use £130,000 of LSA. SSPTFC only uses LSA of 25% of the amount crystallised. The difference after April is it would use £196,000 of LSDBA but before April it would only use £130,000. I'd recommend havin…
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Gross stupidity or adviser negligence.
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Am assuming the benefits are being settled with 2 years. Only lump sums get tested in the new world - that is a basic tenet of the whole change. Death benefits in the form of drawdown are LTA tested now pre April (but the charge is 0% so meani…
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The default deduction from LSA and LSDBA will be LTA% used x £1,073,100 x 25% - so basically they will use £130,00 of LSA.
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Tool print out
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Don't read the regs - read Tech Matters instead! https://www.mandg.com/wealth/adviser-services/tech-matters/news-and-views/lifetime-allowance-abolition-from-2024/lsa-lsdba You can get a TTFAC regardless of how much LTA you have used. Use this …
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I don't believe tax relief is the test. The main test is were they started prior to April 2006 and have remained unchanged. And if so it's OK.
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It depends - see here - https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm093510
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Pass - the only logical conclusion is that they are just expenses from your net income.
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The standard transitional amount is 25% of the LTA used % x £1,073,100 - that's a crystal clear. It is also crystal clear that if you have had less than the standard transitional amount in tax free cash you can get a certificate. You will not …
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They can - all BCEs that had no PCLS attached are in scope
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Scheme guide - https://assets.publishing.service.gov.uk/media/6242fc93e90e075f0a61dc67/jps-scheme-guide-2022.pdf No tax relief so can't possibly see how they would have an impact on ANI.
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Yes any LTA used where no PCLS (or PCLS was lower than the standard transitional amount) can get a TTFAC. It's that simple. Our new tool will do the sums - https://www.mandg.com/wealth/adviser-services/tech-matters/tools-and-calculators/lta-trans…