Life Time Allowance (LTA) tax

ukdw

If growth is really good, going into the 40% tax band a little bit to withdraw growth isn't necessarily a bad idea too - as if you end up paying 25% LTA tax at age 75 and then later you or your descendants pay 20% on top of that then this works out the same as paying 40% now.

Sterlingtimes

cfw1994 said:

My plan is to leave that uncrystallised piece alone, and to do my best to ensure any growth in the drawdown pot is taken by the age of 75, as per your bit highlighted above.
Quite the timing & mathematical conundrum, eh!

Yes, it is complicated, is it not? Any changes in tax law or inflation could upset the equation. The protection from Inheritance tax is the other consideration. I presume that even uncrystallised sums are protected from inheritance tax.

Albermarle

I presume that even uncrystallised sums are protected from inheritance tax.

Yes they are.