AVC advice

Silvertabby

SarahB16 said:

Silvertabby said:

In your own case, I would say that the benefits of maximising your AVC contributions outweigh any minor tax bills now.  Tax relief in, tax free (up to a limit) out.  But if you do exceed the tax free limit, then you have the option of using the surplus AVC funds to buy additional index linked LGPS benefits at very favourable rates.

May I ask a question please regarding the above. 

For me to fully understand what @Silvertabby is very kindly saying.  Am I correct in thinking that if the tax free limit (on the lump sum amount from the AVC contributions) is exceeded then yes you have the option of buying additional index linked LGPS pension however you would still need to be mindful not to exceed the lifetime allowance (currently £1,073,100)?  

If the lifetime allowance is exceeded, then tax would be paid on the amount above £1,073,100?   

Yes, the additional pension bought would count towards the LTA.  Whatever that may be.....