‘Transitional tax-free amount certificate

twitchy

Hi all,
I'm currently applying to start withdrawing one of my private pensions, the one I am trying to access is a total of £41k. I am taking a 25% tax free lump sum and the rest monthly, I am 65 in March and want it to start then. 
I have another private pension which will be about 100K which I will be applying for after April next year, the 41k pension provider has asked me the following:

"In order for us to calculate your pension benefits in line with the new pension tax rules, we need you to answer the following information by email:

• Whether you intend to apply to us for a ‘Transitional tax-free amount certificate’; or

• Whether you intend to apply for a ‘Transitional tax-free amount certificate’ from another scheme in which you have benefits; and

• Whether you intend to take any tax-free lump sums from other pension schemes after 5 April 2024 up to the day you’re taking benefits from this BOC Retirement Benefits Scheme and

• The exact amount of LTA used up before 6 April 2024.

If you intend to apply to us for a ‘Transitional tax-free amount certificate’, you will need to provide us with complete evidence of the tax-free lump sums you received before 6 April 2024 from all your pension schemes. We will be unable to put your pension benefits into payment until you’ve provided this information to us and a ‘Transitional tax-free amount certificate’ has been granted.

Please note that we won’t be able to put your benefits into payment until you have confirmed all the requested information in writing.

We can’t provide you with any advice in this regard and recommend that you speak with a financial adviser if you feel this might be relevant to you.

When you confirm the above details to us, please do so by email wherever possible, and include “LTA01” in the subject line. If you would prefer to confirm this information through the post, please write “LTA01” in the top left hand corner of your letter."

Any help would be appreciated.

Thanks,

Dave B 

JoeCrystal

What is the question? Not sure what you are asking here.

Sarahspangles

twitchy said:

I'm currently applying to start withdrawing one of my private pensions, the one I am trying to access is a total of £41k. I am taking a 25% tax free lump sum and the rest monthly, I am 65 in March and want it to start then. 
I have another private pension which will be about 100K which I will be applying for after April next year, the 41k pension provider has asked me the following: 

Are you asking if you need one of the certificates referred to? I don’t think you do but I wouldn’t want you to take my word for it! If someone has a very significant pension pot there is a limit to the amount of tax free lump sum they can take. So they need to maintain records and evidence that they haven’t exceeded this. It won’t apply to most of us.

Albermarle

Due to admin complications, when the LTA was abolished and the Max TFLS was established as £268K, some people found themselves in a position where they had previously used some of the LTA % but none of the TFLS %.
A typical example would be someone who had accessed a DB pension, but not taken any tax free lump sum.
To make sure they could take the Max TFLS in future, they need to have obtained this Transitional certificate.

If you have not previously accessed any pension, and /or you are very unlikely every to be in a position to take TFLS in total of over a quarter of a Million Pounds, then you do not need one or to apply for one. 

DRS1

I thought the Transitional Certificate only applied where you had taken benefits before 5 April 2024 so I don't know why they are asking if you intend to ask them for one now.  When I applied earlier this year for my pensions I am sure they only asked if I had a certificate not if I wanted one.
Assuming this is the first pension you are putting into payment the answers will be fairly simple.
You don't have a £2million pension tucked away somewhere that you are not telling us about do you?

Albermarle

DRS1 said:

I thought the Transitional Certificate only applied where you had taken benefits before 5 April 2024 so I don't know why they are asking if you intend to ask them for one now.  When I applied earlier this year for my pensions I am sure they only asked if I had a certificate not if I wanted one.
Assuming this is the first pension you are putting into payment the answers will be fairly simple.
You don't have a £2million pension tucked away somewhere that you are not telling us about do you?

You could still have taken benefits before April 2024, but not applied for a certificate yet.
The pension provider has no idea of any other pensions you may have or may have taken in the past.

DRS1

Albermarle said:

DRS1 said:

I thought the Transitional Certificate only applied where you had taken benefits before 5 April 2024 so I don't know why they are asking if you intend to ask them for one now.  When I applied earlier this year for my pensions I am sure they only asked if I had a certificate not if I wanted one.
Assuming this is the first pension you are putting into payment the answers will be fairly simple.
You don't have a £2million pension tucked away somewhere that you are not telling us about do you?

You could still have taken benefits before April 2024, but not applied for a certificate yet.
The pension provider has no idea of any other pensions you may have or may have taken in the past.

Granted but the first question is do you intend to apply TO US for a certificate.  Surely they would know what benefits they have paid you.  I had thought they were using an old form of words but perhaps you are right and they are just covering themselves against all possibilities.

bjorn_toby_wilde

Answers here to hypothetical questions. The OP still hasn’t clarified what exactly they want to know

RogerPensionGuy

Regarding the onening poster. 

The wording may not be clear. 

I think basically when activiting pensions/taking tax free cash, the organisations involved needs to be aware of other transactions to ensure as far as possible that people don't exceed their personal tax free allowance and remember the LTA has been getting moved about like a football since 2006.

Some people will take tax free cash from multiple pensions, so these organisations need to be in possession of all the information.

Just answer their questions as they requested and it will work out correctly I would guess. 

twitchy

DRS1 said:

I thought the Transitional Certificate only applied where you had taken benefits before 5 April 2024 so I don't know why they are asking if you intend to ask them for one now.  When I applied earlier this year for my pensions I am sure they only asked if I had a certificate not if I wanted one.
Assuming this is the first pension you are putting into payment the answers will be fairly simple.
You don't have a £2million pension tucked away somewhere that you are not telling us about do you?

I wish I had, Thanks

twitchy

bjorn_toby_wilde said:

Answers here to hypothetical questions. The OP still hasn’t clarified what exactly they want to know

I was wondering if I needed to apply for a certificate, as I haven't applied for any other pensions it seems like I don't.
Thanks,