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LTA question
Tom2023
Posts: 151 Forumite
I took a pension a couple of years ago. The value of the fund was estimated at £825k and so I used 60% of my then £1,25m LTA.
Does that mean that I have 40% of the present £1m LTA left or do I only have £175k left?
Thanks in advance for any help.
Does that mean that I have 40% of the present £1m LTA left or do I only have £175k left?
Thanks in advance for any help.
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Comments
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I took a pension a couple of years ago. The value of the fund was estimated at £825k and so I used 60% of my then £1,25m LTA.
Does that mean that I have 40% of the present £1m LTA left or do I only have £175k left?
Thanks in advance for any help.
The answer is 40% of the current LTA. Though your figures imply you have actually used 66% of your LTA, so 34% remains.
However, when you "took" the pension, what did you actually do? Did you purchase an annuity or did you move into drawdown? If drawdown, then you may need to consider growth on those funds in addition to any other pensions.
Have you applied for any protection of your lifetime allowance?I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.0 -
It is a company pension so I get a monthly payment. Thank you for your advice, that has put my mind at ease.0
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Just to confirm what HappyHarry wrote, it's the percentages that are retained and used for subsequent transactions, so you'd have 40% of the Lifetime Allowance at the time you do your next transaction left. Though I agree that it looks more like 34% remaining than 40%.0
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If you have not made any pension contributions since 5th April 2016 you may want to consider applying for Fixed Protection 2016 which would protect your lifetime allowance at £1.25m rather than the current £1m.
Also, if the combination of all your pensions totalled more than £1m on 5th April 2016 you may be able to apply for Individual Protection which will still allow you to make future pension contributions.
There are further lifetime allowance protections available if your total pension pot was worth more than £1.5m on the 5th April 2014.0 -
Unfortunately not, at this point. The deadline for Individual Protection 2014 applications was 5 April 2017.CRobertsFPFS wrote: »There are further lifetime allowance protections available if your total pension pot was worth more than £1.5m on the 5th April 2014.0
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