Lifetime allowance query

Chucklechops

I know lump sum allowance has taken over lifetime allowance, but I'm just helping my F-I-L understand his pension.

At age 75 (01/03/20) his lifetime allowance was tested, and the figure was 92%. This included the TFC he took with his existing plan, BCE 5A & 5B, and 15% LTA used with a 3rd party provider.

Now, post age 75, he wants to take some more tax-free cash. His question is, how much more TFC can he take? Does he take into account the LTA previously used, EXCLUDING the BCE 5A & 5B, or does he only have (100-92%) figure to play with?

Many thanks

Triumph13

Per the HMRC manual

If an individual:

• reached the age of 75 before 6 April 2024, and
• on reaching that age and amounts were crystallised by one or more of BCE 5, 5A and 5B, and
• they did not become entitled to a lump sum under a registered pension scheme in the period beginning with the date the individual reached 75 and ending on 5 April 2024

then the LTA previously-used amount is to be reduced by the amount of one (or more that one where relevant) of BCE 5, 5A and 5B.

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm174200

So it does indeed look like he can add back the BCE 5 items - as long as he hasn't taken any lump sum since.