Transition Arrangements for PCLS following abolition of LTA in April

davec1001

Hi,

What is the best source for info regarding the transition stuff?   Any feed/stream I should subscribe to?

David

FIREDreamer

I asked Hargreaves Lansdown and got this response …

Marcon

https://adviser.royallondon.com/technical-central/pensions/benefit-options/Lump-sum-and-lump-sum-death-benefit-allowances-from-April-2024/

davec1001

Thanks for this.     

Actually, I think I have been focussed on the wrong question.  I need to be able to provide evidence that I did not commute any of my DB Pension when I took it in 2019.   I have P60s, a web page that states the date pension commenced with a column headed 'Lump Sum Taken' which is blank.

I requested documentation back in January, but I have not heard anything sigh

FIREDreamer

davec1001 said:

Thanks for this.     

Actually, I think I have been focussed on the wrong question.  I need to be able to provide evidence that I did not commute any of my DB Pension when I took it in 2019.   I have P60s, a web page that states the date pension commenced with a column headed 'Lump Sum Taken' which is blank.

I requested documentation back in January, but I have not heard anything sigh

Did you not get a statement showing pension, PCLS (zero) and LTA percentage used when you started taking your pension? I did.

Marcon

davec1001 said:

Thanks for this.     

Actually, I think I have been focussed on the wrong question.  I need to be able to provide evidence that I did not commute any of my DB Pension when I took it in 2019.   I have P60s, a web page that states the date pension commenced with a column headed 'Lump Sum Taken' which is blank.

Is there a reason why that won't suffice - ie have you checked with whoever needs this evidence?

davec1001 said:

I requested documentation back in January, but I have not heard anything sigh

Probably because the poor souls grappling with this whole issue are still having their time taken up struggling to update processes and systems as the legislative position becomes more certain...until the next change.

Notepad_Phil

davec1001 said:

Thanks for this.     

Actually, I think I have been focussed on the wrong question.  I need to be able to provide evidence that I did not commute any of my DB Pension when I took it in 2019.   I have P60s, a web page that states the date pension commenced with a column headed 'Lump Sum Taken' which is blank.

I requested documentation back in January, but I have not heard anything sigh

I'm waiting till the HMRC publish what they consider to be 'full evidence' before getting in contact with my defined benefit scheme - I may be in a similar position to you, in that they never sent any details of the LTA and lump sum after my pension started, although in my case I know how much it was from the information sent beforehand and which I had to send back to them.

Luckily in my case I don't need to urgently take any tax-free sums from my pensions, so I can wait for the dust to settle before trying to get this settled. It could all be a bit troublesome for someone who wanted to set up drawdown or take a UFPLS in the near future.

Albermarle

Notepad_Phil said:

davec1001 said:

Thanks for this.     

Actually, I think I have been focussed on the wrong question.  I need to be able to provide evidence that I did not commute any of my DB Pension when I took it in 2019.   I have P60s, a web page that states the date pension commenced with a column headed 'Lump Sum Taken' which is blank.

I requested documentation back in January, but I have not heard anything sigh

I'm waiting till the HMRC publish what they consider to be 'full evidence' before getting in contact with my defined benefit scheme - I may be in a similar position to you, in that they never sent any details of the LTA and lump sum after my pension started, although in my case I know how much it was from the information sent beforehand and which I had to send back to them.

Luckily in my case I don't need to urgently take any tax-free sums from my pensions, so I can wait for the dust to settle before trying to get this settled. It could all be a bit troublesome for someone who wanted to set up drawdown or take a UFPLS in the near future.

I am doing the same. Keeping my head down and waiting before requesting the info about a TTFA certificate from by DB administrator ( I did not take the PCLS). The administrator is Mercer, so they could take a long time to get themselves organised on past experience....

FIREDreamer

Albermarle said:

Notepad_Phil said:

davec1001 said:

Thanks for this.     

Actually, I think I have been focussed on the wrong question.  I need to be able to provide evidence that I did not commute any of my DB Pension when I took it in 2019.   I have P60s, a web page that states the date pension commenced with a column headed 'Lump Sum Taken' which is blank.

I requested documentation back in January, but I have not heard anything sigh

I'm waiting till the HMRC publish what they consider to be 'full evidence' before getting in contact with my defined benefit scheme - I may be in a similar position to you, in that they never sent any details of the LTA and lump sum after my pension started, although in my case I know how much it was from the information sent beforehand and which I had to send back to them.

Luckily in my case I don't need to urgently take any tax-free sums from my pensions, so I can wait for the dust to settle before trying to get this settled. It could all be a bit troublesome for someone who wanted to set up drawdown or take a UFPLS in the near future.

I am doing the same. Keeping my head down and waiting before requesting the info about a TTFA certificate from by DB administrator ( I did not take the PCLS). The administrator is Mercer, so they could take a long time to get themselves organised on past experience....

Look at my post. Your current provider can generate one if you supply them with evidence of no PCLS.

Albermarle

FIREDreamer said:

Albermarle said:

Notepad_Phil said:

davec1001 said:

Thanks for this.     

Actually, I think I have been focussed on the wrong question.  I need to be able to provide evidence that I did not commute any of my DB Pension when I took it in 2019.   I have P60s, a web page that states the date pension commenced with a column headed 'Lump Sum Taken' which is blank.

I requested documentation back in January, but I have not heard anything sigh

I'm waiting till the HMRC publish what they consider to be 'full evidence' before getting in contact with my defined benefit scheme - I may be in a similar position to you, in that they never sent any details of the LTA and lump sum after my pension started, although in my case I know how much it was from the information sent beforehand and which I had to send back to them.

Luckily in my case I don't need to urgently take any tax-free sums from my pensions, so I can wait for the dust to settle before trying to get this settled. It could all be a bit troublesome for someone who wanted to set up drawdown or take a UFPLS in the near future.

I am doing the same. Keeping my head down and waiting before requesting the info about a TTFA certificate from by DB administrator ( I did not take the PCLS). The administrator is Mercer, so they could take a long time to get themselves organised on past experience....

Look at my post. Your current provider can generate one if you supply them with evidence of no PCLS.

OK , it does say that now I read it more carefully. Thanks.
 Although I suspect not all providers will be prepared like HL seem to be.

jaypers

I went through this with my advisor last week. My circumstances are that I fully crystallised (100%) 5 years ago to take 25% tax free cash. I have some remaining ‘excess LTA’ cash left.

From the new tax year, I will need to apply for this transitional certificate from my provider. This will allow me to apply for further tax free cash, based on the difference between the LTA limit at the time of my original crystallisation (£1,030,000) and now (£1,073,100). This will mean crystallising a further £43,100 giving an additional tax free sum of £10,775

There are a number of hoops to jump through here and one to watch it that with effect from 6th April, if any crystallisation events occur before going through this process you won’t be able to get any further tax free cash.

Would advise anyone to speak to their IFA if they are in this very fortunate position.