LTA %

Albermarle

There is lots of advice on the forum about ways of maybe avoiding LTA or paying as little as possible .
Maybe its easier than it looks , just don't tell anybody !

westy22

shinytop said:

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?

Maybe they don't.  I'm not sure what BCE information pension providers send to HMRC and, if they do, how do HMRC record it and keep track.  In particular, if you just take the PCLS and no subsequent income is that even communicated to HMRC?

Mutton_Geoff

westy22 said:

shinytop said:

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?

Maybe they don't.  I'm not sure what BCE information pension providers send to HMRC and, if they do, how do HMRC record it and keep track.  In particular, if you just take the PCLS and no subsequent income is that even communicated to HMRC?

I always work on the principal that tax avoidance is fair game, tax evasion is illegal and could end up with a prison sentence so I'm happy to monitor my own pension to stay the right side of the law.

cfw1994

Albermarle said:

There is lots of advice on the forum about ways of maybe avoiding LTA or paying as little as possible .
Maybe its easier than it looks , just don't tell anybody !

It does feel particularly odd, eh.....
I guess I am mostly with @Mutton_Geoff on this - avoid what you can, but don't lie.   Still, if that is all there is to it....I mean, how often do the Government lie to the public about things......quid pro quo, anyone?  

marlot

I was asked by each of my pension providers to show proof from the prior pensions, and also whether I was crystallising any others in parallel.

garmeg

marlot said:

I was asked by each of my pension providers to show proof from the prior pensions, and also whether I was crystallising any others in parallel.

How do you prove that you haven't crystallised some pension from anywhere?

cfw1994

garmeg said:

marlot said:

I was asked by each of my pension providers to show proof from the prior pensions, and also whether I was crystallising any others in parallel.

How do you prove that you haven't crystallised some pension from anywhere?

It's a very good question.   Outside of going through all your accounts.....some of which would be beyond the "7 years" generally accepted as being kept, I can't see how they could even start to challenge this!

I kind of assumed all pension providers would be obliged to send BCE event information to HMRC, tied to National Insurance numbers.   If they are not, then relying on trust appears to be.....a shoddy mechanism, there to be widely and soundly broken!!!

westy22

cfw1994 said:

garmeg said:

marlot said:

I was asked by each of my pension providers to show proof from the prior pensions, and also whether I was crystallising any others in parallel.

How do you prove that you haven't crystallised some pension from anywhere?

I kind of assumed all pension providers would be obliged to send BCE event information to HMRC, tied to National Insurance numbers.   If they are not, then relying on trust appears to be.....a shoddy mechanism, there to be widely and soundly broken!!!

Also, if HMRC do hold that information then why can it not be seen on a Personal Tax Account? - every other aspect of my HMRC / tax /employment history can be seen through my account but nothing on BCEs or LTA utilization.

coyrls

On my LTA form from my pension provider, it asks for details of pension benefits that started payment before 6 April 2006 but not for details of any benefits that started payment after then.  Perhaps LTA information has been given to HMRC by pension providers since 6 April 2006?

shinytop

westy22 said:

cfw1994 said:

garmeg said:

marlot said:

I was asked by each of my pension providers to show proof from the prior pensions, and also whether I was crystallising any others in parallel.

How do you prove that you haven't crystallised some pension from anywhere?

I kind of assumed all pension providers would be obliged to send BCE event information to HMRC, tied to National Insurance numbers.   If they are not, then relying on trust appears to be.....a shoddy mechanism, there to be widely and soundly broken!!!

Also, if HMRC do hold that information then why can it not be seen on a Personal Tax Account? - every other aspect of my HMRC / tax /employment history can be seen through my account but nothing on BCEs or LTA utilization.

Because the IT system changes to make it happen haven't yet been done.  Adding this to what's there now will be a significant change.  That's not to say they don't collect and then keep the information on a stand-alone system somewhere; they might well do that.