LTA %

50Twuncle

Does a person have multiple LTA% - if claiming multiple pensions - or is a single LTA% used across the whole lot ?

wjr4

A single LTA for all pensions. Every time you take benefits from a pension, it is tested against the LTA. 

westy22

wjr4 said:

A single LTA for all pensions. Every time you take benefits from a pension, it is tested against the LTA. 

How does each pension provider know what LTA% has been previously applied by other providers?  Is there a central source of this information i.e. HMRC?

jamesd

Single.   

Silvertabby

westy22 said:

wjr4 said:

A single LTA for all pensions. Every time you take benefits from a pension, it is tested against the LTA. 

How does each pension provider know what LTA% has been previously applied by other providers?  Is there a central source of this information i.e. HMRC?

They will ask you.  At some point in the procedure, you will need to sign a declaration confirming that you haven't breached the LTA limit.

garmeg

Silvertabby said:

westy22 said:

wjr4 said:

A single LTA for all pensions. Every time you take benefits from a pension, it is tested against the LTA. 

How does each pension provider know what LTA% has been previously applied by other providers?  Is there a central source of this information i.e. HMRC?

They will ask you.  At some point in the procedure, you will need to sign a declaration confirming that you haven't breached the LTA limit.

Presumably HMRC have a record of everybody's LTA usage - they cannot just rely on the honesty of people as some of the LTA charges could be significant.

coyrls

Silvertabby said:

westy22 said:

wjr4 said:

A single LTA for all pensions. Every time you take benefits from a pension, it is tested against the LTA. 

How does each pension provider know what LTA% has been previously applied by other providers?  Is there a central source of this information i.e. HMRC?

They will ask you.  At some point in the procedure, you will need to sign a declaration confirming that you haven't breached the LTA limit.

I am just going through this with a second pension, they ask you to sign a declaration but don't ask you what percentage of the LTA you have already used.  I asked about this and they told me it was my responsibilty to keep a tally of the percentage of the LTA used.   I had assumed that I would have to provide the BCE details from my first pension to the second provider but that doesn't seem to be the case.

Mutton_Geoff

I'm going through this currently. One pension provider (SIPP) wrote to me at the time confirming % of LTA used when I triggered a BCE (PCLS). I have recently provided the second pension (DB scheme) with that % so they can use the balance up then pay the LTA charge by commuting some of my pension and paying me the rest as a final salary. I have a third DC scheme and I will tell I have no LTA headroom left, have them pay the 25% tax charge and transfer that into my already crystallised SIPP to provide a single source of drawdown funds to supplement my DB income from a crystallised pot.

shinytop

II asked me details of previous crystallisations - amounts and % LTA.  HL just wanted a declaration that I wasn't exceeding.

Albermarle

shinytop said:

II asked me details of previous crystallisations - amounts and % LTA.  HL just wanted a declaration that I wasn't exceeding.

I presume if you tried to lie , or made a genuine mistake , then one day HMRC would twig it .

shinytop

Albermarle said:

shinytop said:

II asked me details of previous crystallisations - amounts and % LTA.  HL just wanted a declaration that I wasn't exceeding.

I presume if you tried to lie , or made a genuine mistake , then one day HMRC would twig it .

I suppose so, if they keep track of BCE events.  They know when you take income but do they know when you crystallise or trigger another BCE event?