Adviser insight on transitional tax-free amount certificates

'A blanket approach should not be taken'

clock • 4 min read

Advisers should proceed with caution when it comes to transitional tax-free amount certificates, writes Lisa Webster

The basic premise of the new pension rules coming in from April is very simple - only lump sums are tested. We have a new lump sum allowance (LSA) that restricts tax-free lump sums in life and the lump sum and death benefit allowance (LSDBA) that restricts lump sum death benefits (and serious ill-health lump sums). For those who have not yet accessed benefits and will only do so under the new regime, calculations are simple, and once your allowance is used up, it's used up. Where things have been overly complicated by HM Revenue & Customs (HMRC) are the transitional arrangements. U...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

LTA removal: Navigating policy intentions versus practice

LTA removal: Navigating policy intentions versus practice

'HMRC has acknowledged the faults' and will fix the issues

Josh Croft
clock 30 May 2024 • 2 min read
Our daughters deserve better! Closing the gender pension gap

Our daughters deserve better! Closing the gender pension gap

'Raising awareness, collaboration, and education, are key'

Susan Hope
clock 28 May 2024 • 4 min read
Whitehall Group launches commercial property-focused SIPP

Whitehall Group launches commercial property-focused SIPP

SIPP available through advisers and direct to clients

Jenna Brown
clock 21 May 2024 • 1 min read