Advice needed please - lump sum allowance (LSA) and lump sum and death benefit allowance (LSDBA)

redofromstart

Hello, I am hoping that someone can help sense check something for me.

My husband passed away a few weeks ago.  He was 61, and took early retirement in 2021. Not ill health related.

Pension 1 was an old DB scheme - he had taken early retirement and the maximum (assume 25%) lump sum.  I get a spouses pension from this scheme, and a small guaranteed min period payment. 21.33% of the lifetime allowance.
Pension 2 was PPF - so compensation but was a transferred DB scheme - again he had taken early retirement and the maximum lump sum (assume 25%). I get dependents compensation for this one. This was a smaller lump sum, and I assume less than the 21.33% of Pension 1.
Pension 3 and 4 are both DC pots, both c£40k which he had not touched.  

Pension 3 have sent me the most confusing and jargon filled letter about applying for a 'Transitional tax-free amount certificate'. 

As far as I can tell (from reading better written sources!) there is no value in a certificate at all for me? He was nowhere near the lifetime allowances and the £80k that is available now is nowhere near going to push it into taxable.

ETA:
Two max tax free lump sums form DB schemes in 2021
Nothing taken since

Am I completely missing something?

Thank you for reading.

Sarahspangles

redofromstart said:

Pension 3 have sent me the most confusing and jargon filled letter about applying for a 'Transitional tax-free amount certificate'. 

As far as I can tell (from reading better written sources!) there is no value in a certificate at all for me? He was nowhere near the lifetime allowances and the £80k that is available now is nowhere near going to push it into taxable.

ETA:
Two max tax free lump sums form DB schemes in 2021
Nothing taken since

Sorry to hear that. It doesn’t sound like you need a certificate but Pension 3 and 4 have to ask as they know nothing about any of the other pensions

Albermarle

Normally the TTTFA certificate would only be relevant if he had taken his DB pension without the lump sum.
Then with the certificate you start from a point of zero regarding the LSA. This can be useful if you were taking tax free sums from bigger DC pots, as you would hit the £268K later.

Neither point seems to apply so you do not need one/are not eligible for one anyway.

redofromstart

Thank you both, much appreciated.  That agrees with what I thought. I will let them know that I will not be applying for a certificate.