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My client started a defined contribution pension ten years ago when he turned 55. As it was a guaranteed annuity he took the maximum income and no lump sum; the company said it used 10% of his lifetime allowance. He is now about to cash in his remaining DC pensions which amount to more than £1.4m.
As the LTA charge has been abolished but he has never taken a lump sum before does that 10% reduce his maximum tax-free amount? I suspect it still does but I would like to have chapter and verse to be sure. This is of course subject to changes in the Budget but it would be helpful to understand the rules.
Query 20 418 – Minted.
Tax-free amount certificate should be obtained.
The lifetime allowance for pension benefits was abolished as of 6 April 2024...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
