Lifetime Allowance in 2020 for DC pension

p00hsticks

I'm hoping there is an easy answer to this one to save me waiting for my pension provider to get back to me. 

I know the rules have now changed, but as part of my application for a DB pension that is due to come into payment, I need to give details of how much of my Lifetime Allowance I have used in various timeframes in the past.

In July 2020, I crystallised an old DC pension pot - I took the 25% tax-free lump sum and kept the rest in the pension (actually a differnt pension with the same company as it was a very old scheme that was no longer supported going forward). 

Unfortunately I can't lay my hands on the paperwork associated with this action (it may be in storage) other than knowing the value of the total pot at the time and the corresponding 25% tax-free lump sum. 

Is there is a simple calculation I can do to work out what % of the LTA that represents ?

Many thanks in advance

FIREDreamer

p00hsticks said:

I'm hoping there is an easy answer to this one to save me waiting for my pension provider to get back to me. 

I know the rules have now changed, but as part of my application for a DB pension that is due to come into payment, I need to give details of how much of my Lifetime Allowance I have used in various timeframes in the past.

In July 2020, I crystallised an old DC pension pot - I took the 25% tax-free lump sum and kept the rest in the pension (actually a differnt pension with the same company as it was a very old scheme that was no longer supported going forward). 

Unfortunately I can't lay my hands on the paperwork associated with this action (it may be in storage) other than knowing the value of the total pot at the time and the corresponding 25% tax-free lump sum. 

Is there is a simple calculation I can do to work out what % of the LTA that represents ?

Many thanks in advance

LTA% = PCLS x4 / £1,073,100

p00hsticks

FIREDreamer said:

p00hsticks said:

I'm hoping there is an easy answer to this one to save me waiting for my pension provider to get back to me. 

I know the rules have now changed, but as part of my application for a DB pension that is due to come into payment, I need to give details of how much of my Lifetime Allowance I have used in various timeframes in the past.

In July 2020, I crystallised an old DC pension pot - I took the 25% tax-free lump sum and kept the rest in the pension (actually a differnt pension with the same company as it was a very old scheme that was no longer supported going forward). 

Unfortunately I can't lay my hands on the paperwork associated with this action (it may be in storage) other than knowing the value of the total pot at the time and the corresponding 25% tax-free lump sum. 

Is there is a simple calculation I can do to work out what % of the LTA that represents ?

Many thanks in advance

LTA% = PCLS x4 / £1,073,100

Thanks - Does that apply for a DC pension as well ? 
So effectively for me it's just the total pot value divided by £1073,100 ...?

FIREDreamer

p00hsticks said:

FIREDreamer said:

p00hsticks said:

I'm hoping there is an easy answer to this one to save me waiting for my pension provider to get back to me. 

I know the rules have now changed, but as part of my application for a DB pension that is due to come into payment, I need to give details of how much of my Lifetime Allowance I have used in various timeframes in the past.

In July 2020, I crystallised an old DC pension pot - I took the 25% tax-free lump sum and kept the rest in the pension (actually a differnt pension with the same company as it was a very old scheme that was no longer supported going forward). 

Unfortunately I can't lay my hands on the paperwork associated with this action (it may be in storage) other than knowing the value of the total pot at the time and the corresponding 25% tax-free lump sum. 

Is there is a simple calculation I can do to work out what % of the LTA that represents ?

Many thanks in advance

LTA% = PCLS x4 / £1,073,100

Thanks - Does that apply for a DC pension as well ? 
So effectively for me it's just the total pot value divided by £1073,100 ...?

It’s a DC you crystallised. I used 4 x PCLS in case you couldn’t remember the amount moved into drawdown. Assuming a standard 25% tax free element.

Alternatively, 

LTA% = (PCLS + Amount moved into drawdown) / £1,073,100

DRS1

p00hsticks said:

FIREDreamer said:

p00hsticks said:

I'm hoping there is an easy answer to this one to save me waiting for my pension provider to get back to me. 

I know the rules have now changed, but as part of my application for a DB pension that is due to come into payment, I need to give details of how much of my Lifetime Allowance I have used in various timeframes in the past.

In July 2020, I crystallised an old DC pension pot - I took the 25% tax-free lump sum and kept the rest in the pension (actually a differnt pension with the same company as it was a very old scheme that was no longer supported going forward). 

Unfortunately I can't lay my hands on the paperwork associated with this action (it may be in storage) other than knowing the value of the total pot at the time and the corresponding 25% tax-free lump sum. 

Is there is a simple calculation I can do to work out what % of the LTA that represents ?

Many thanks in advance

LTA% = PCLS x4 / £1,073,100

Thanks - Does that apply for a DC pension as well ? 
So effectively for me it's just the total pot value divided by £1073,100 ...?

I suspect it ONLY applies to a DC pension
Yes total pot value (including the tax free lump sum) divided by 1073100 and times 100 if you want to be pedantic.

Albermarle

DRS1 said:

p00hsticks said:

FIREDreamer said:

p00hsticks said:

I'm hoping there is an easy answer to this one to save me waiting for my pension provider to get back to me. 

I know the rules have now changed, but as part of my application for a DB pension that is due to come into payment, I need to give details of how much of my Lifetime Allowance I have used in various timeframes in the past.

In July 2020, I crystallised an old DC pension pot - I took the 25% tax-free lump sum and kept the rest in the pension (actually a differnt pension with the same company as it was a very old scheme that was no longer supported going forward). 

Unfortunately I can't lay my hands on the paperwork associated with this action (it may be in storage) other than knowing the value of the total pot at the time and the corresponding 25% tax-free lump sum. 

Is there is a simple calculation I can do to work out what % of the LTA that represents ?

Many thanks in advance

LTA% = PCLS x4 / £1,073,100

Thanks - Does that apply for a DC pension as well ? 
So effectively for me it's just the total pot value divided by £1073,100 ...?

I suspect it ONLY applies to a DC pension
Yes total pot value (including the tax free lump sum) divided by 1073100 and times 100 if you want to be pedantic.

It does,
For a DB pension it is 20X the annual pension income + any tax free pension commencement sum taken /£1,073,100 

FIREDreamer

Albermarle said:

DRS1 said:

p00hsticks said:

FIREDreamer said:

p00hsticks said:

I'm hoping there is an easy answer to this one to save me waiting for my pension provider to get back to me. 

I know the rules have now changed, but as part of my application for a DB pension that is due to come into payment, I need to give details of how much of my Lifetime Allowance I have used in various timeframes in the past.

In July 2020, I crystallised an old DC pension pot - I took the 25% tax-free lump sum and kept the rest in the pension (actually a differnt pension with the same company as it was a very old scheme that was no longer supported going forward). 

Unfortunately I can't lay my hands on the paperwork associated with this action (it may be in storage) other than knowing the value of the total pot at the time and the corresponding 25% tax-free lump sum. 

Is there is a simple calculation I can do to work out what % of the LTA that represents ?

Many thanks in advance

LTA% = PCLS x4 / £1,073,100

Thanks - Does that apply for a DC pension as well ? 
So effectively for me it's just the total pot value divided by £1073,100 ...?

I suspect it ONLY applies to a DC pension
Yes total pot value (including the tax free lump sum) divided by 1073100 and times 100 if you want to be pedantic.

It does,
For a DB pension it is 20X the annual pension income + any tax free pension commencement sum taken /£1,073,100 

He / she specifically asked about a DC pension crystallised in 2020 so my answer was geared towards that.

p00hsticks

FIREDreamer said:

p00hsticks said:

FIREDreamer said:

p00hsticks said:

I'm hoping there is an easy answer to this one to save me waiting for my pension provider to get back to me. 

I know the rules have now changed, but as part of my application for a DB pension that is due to come into payment, I need to give details of how much of my Lifetime Allowance I have used in various timeframes in the past.

In July 2020, I crystallised an old DC pension pot - I took the 25% tax-free lump sum and kept the rest in the pension (actually a differnt pension with the same company as it was a very old scheme that was no longer supported going forward). 

Unfortunately I can't lay my hands on the paperwork associated with this action (it may be in storage) other than knowing the value of the total pot at the time and the corresponding 25% tax-free lump sum. 

Is there is a simple calculation I can do to work out what % of the LTA that represents ?

Many thanks in advance

LTA% = PCLS x4 / £1,073,100

Thanks - Does that apply for a DC pension as well ? 
So effectively for me it's just the total pot value divided by £1073,100 ...?

It’s a DC you crystallised. I used 4 x PCLS in case you couldn’t remember the amount moved into drawdown. Assuming a standard 25% tax free element.

Thank you - it was the use of the term PCLS (Pension Commencement Lump Sum) that slightly confused me as I (perhaps mistakenly) only associated that with DB pensions, and. as you say, this was a DC one.

FIREDreamer

p00hsticks said:

FIREDreamer said:

p00hsticks said:

FIREDreamer said:

p00hsticks said:

I'm hoping there is an easy answer to this one to save me waiting for my pension provider to get back to me. 

I know the rules have now changed, but as part of my application for a DB pension that is due to come into payment, I need to give details of how much of my Lifetime Allowance I have used in various timeframes in the past.

In July 2020, I crystallised an old DC pension pot - I took the 25% tax-free lump sum and kept the rest in the pension (actually a differnt pension with the same company as it was a very old scheme that was no longer supported going forward). 

Unfortunately I can't lay my hands on the paperwork associated with this action (it may be in storage) other than knowing the value of the total pot at the time and the corresponding 25% tax-free lump sum. 

Is there is a simple calculation I can do to work out what % of the LTA that represents ?

Many thanks in advance

LTA% = PCLS x4 / £1,073,100

Thanks - Does that apply for a DC pension as well ? 
So effectively for me it's just the total pot value divided by £1073,100 ...?

It’s a DC you crystallised. I used 4 x PCLS in case you couldn’t remember the amount moved into drawdown. Assuming a standard 25% tax free element.

Thank you - it was the use of the term PCLS (Pension Commencement Lump Sum) that slightly confused me as I (perhaps mistakenly) only associated that with DB pensions, and. as you say, this was a DC one.

Whether it’s a DC or DB, the tax free element is tax free cash.

However, the tax free element of a small pot of £10,000 or less is not PCLS, rather confusingly.