LTA advice

Retirement2026

I cashed in my DB pension in 2018 and took a lump sum of £158k. I am leaving the civil service in the next 12 months, aged 66yrs  (have been there 25 years so primarily classic with a few years of Alpha) and have the option of a lump sum of £160k. Do I fall foul of the LTA's? Any adive or guidance really appreciated. Thank you 

Simon11

Nope, you can still be a member of the Lawn Tennis Association.




As to your LTA question it was abolished 9 months ago and wondered how you hadn't picked this up!

NoMore

Simon11 said:

Nope, you can still be a member of the Lawn Tennis Association.




As to your LTA question it was abolished 9 months ago and wondered how you hadn't picked this up!

But it was replaced by a few different things, including the Lump Sum Allowance of £268275, which looks like it could be a problem for the OP (£158k + £160k lump sum = £318k).

Actually re reading and I made the assumption the lump sums mentioned are tax free, I'm not so sure now for the first cashing in of the DB ? 

Are the lump sums you talking about the Tax free lump sums, or when you said cash in a DB thats the CETV you got ?

Retirement2026

Hi Simon!! Glad I can keep my tennis membership I understand the rules have changed I just don't understand how I am affected. Both figures I quoted relate to the maximum 25% tax free lump sum from each of my pensions  - one I have recieved already (£158K) the other I am thinking about taking in Jan 2026. I am thinking whether I should consider reducing the second lump sum to stay within the £268k allowance. Thank you

NoMore

Retirement2026 said:

Hi Simon!! Glad I can keep my tennis membership I understand the rules have changed I just don't understand how I am affected. Both figures I quoted relate to the maximum 25% tax free lump sum from each of my pensions  - one I have recieved already (£158K) the other I am thinking about taking in Jan 2026. I am thinking whether I should consider reducing the second lump sum to stay within the £268k allowance. Thank you

Anything above the £268k will be charged at your marginal rate of tax, so yeah probably better to commute some of that lump sum into the DB.