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You searched for the term lifetime allowance Your search returned the following 40 results...
 
  • Lifetime allowance charge – excess taken as income - Royal London for advisers

    Lifetime allowance charge – excess taken as income A worked example showing the lifetime allowance charge where the excess is taken as income. Douglas reached his normal retirement date on the 6 April 2020 and had benefits in a personal pension arrangement of £2,000,000. Douglas does not have any...

  • Lifetime Allowance - frequently asked questions - Royal London for advisers

    Lifetime Allowance - frequently asked questions Q: What is the lifetime allowance? A: The lifetime allowance creates a ceiling on the benefits value that can be built up by a member in all registered pension schemes. If the benefits value exceeds the lifetime allowance when benefits are taken...

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    Frequently asked questions

  • Lifetime allowance master-class - Royal London for advisers

    Lifetime allowance - a master-class of the technicalities Hear from Fiona and Jim as they cover everything you need to know about the lifetime allowance - including when benefits are tested, the charge and how it’s paid during lifetime and on death*.  *This webinar was recorded on 20 June 2019. CPD...

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    CPD

    Webinars

  • Lifetime allowance explained - Royal London for advisers

    Lifetime allowance There is no limit on the value of pension savings that can be built up by a member. However, if they exceed the lifetime allowance when they are taken, the amount in excess of the lifetime allowance will be subject to a tax charge known as the lifetime allowance charge. Key facts...

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    Information and guidance

  • Opening the door to Lifetime Allowance and Relevant Life - Royal London for advisers

    Opening the door to lifetime allowance and relevant life In this webinar we look at the features and benefits of a relevant life plan, and how it could be an efficient form of life cover for those clients who may have a lifetime allowance issue. CPD learning outcomes - 45 minutes After watching...

  • Lifetime allowance - All you need to know - Royal London for advisers

    Lifetime allowance - All you need to know The lifetime allowance (LTA) is the maximum amount of pension savings you can build up without a charge being applied when you take your benefits. Key facts The lifetime allowance is the maximum value of benefits that can be taken from a registered pension...

  • Watch our lifetime allowance CPD webinar - Royal London for advisers

    Lifetime allowance - take it to the limit…and beyond Craig explains how to identify if paying a lifetime allowance (LTA) charge or opting out is the right option for your client. He’ll also touch on the factors which could impact suitability and the wider regulatory requirements you should consider...

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    Webinars

  • Lifetime allowance at age 75 case study - Royal London for advisers

    Lifetime allowance at age 75 case study Anyone who has pension benefits with a value in excess of the lifetime allowance will be subject to a tax charge known as the lifetime allowance charge on their excess benefits value when a benefit crystallisation event (BCE) happens. In this case study we...

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    Information and guidance

    Case studies

  • Benefit crystallisation events and the lifetime allowance charge - Royal London for advisers

    Benefit crystallisation events and the lifetime allowance charge The lifetime allowance (LTA) is the maximum amount that can be crystallised before a charge applies. It used to be £1.8m but it’s now £1,073,100. Key facts Pension benefits held in a registered pension scheme will be tested against...

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    Pension freedom

    Defined Benefit

  • Standard Lifetime Allowance - Royal London for advisers

    Standard Lifetime Allowance The history of standard lifetime allowance for the different tax years from 2006/07. Tax year Standard lifetime allowance 2020/2021 £1,073,100 2019/2020 £1,055,000 2018/2019 £1,030,000 2017/2018 £1,000,000 2016/2017 £1,000,000 2015/2016 £1,250,000 2014/2015 £1,250,000...

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    Rates and factors

  • Lifetime allowance charge - Royal London for advisers

    Lifetime allowance charge Anyone who has pension benefits with a value in excess of the lifetime allowance (LA) will be subject to a tax charge on their excess benefits value known as the lifetime allowance charge. Key facts The lifetime allowance is the maximum value of benefits that can be taken...

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    Information and guidance

  • Lifetime allowance charge case studies - Royal London for advisers

    Lifetime allowance charge - case studies Anyone who has pension benefits with a value in excess of the lifetime allowance (LA) will be subject to a tax charge on their excess benefits value known as the lifetime allowance charge. These case studies show how this charge is applied. In our Lifetime...

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    Information and guidance

  • Lifetime allowance charge and scheme pension in a defined benefit scheme - Royal London for advisers

    Lifetime allowance charge - scheme pension in a defined benefit scheme A worked example where somebody has exceeded the lifetime allowance in a defined benefit scheme. Angela is a member of her employer’s defined benefit pension scheme. On retirement at age 65 she has a scheme pension entitlement...

  • Lifetime allowance charge - designated money in drawdown at age 75 - Royal London for advisers

    Lifetime allowance charge - designated money in drawdown at age 75 A worked example of how the lifetime allowance charge is calculated for somebody in drawdown at age 75. James retired in September 2010 at age 65 with DC savings of £1,400,000. He designates £1,050,000 for drawdown and takes...

  • Individual protection - Royal London for advisers

    Individual protection Individual protection (IP) maintains the lifetime allowance at a certain level depending on what type the individual has. There are two different versions. Key facts Individual protection 2014 gives individuals a protected lifetime allowance equal to the value of their pension...

  • Benefit options - Royal London for advisers

    Lifetime allowance and benefit options The main purpose of a pension is to provide a member with an income when they reach a certain age. This section provides information on the way benefits can be taken and the limits, protections and allowances that are available to your clients. The basics...

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    Information and guidance

  • The lifetime allowance ‘timebomb’ - Royal London for advisers

    The lifetime allowance ‘timebomb’ Steve Webb 26 April 2019 Share Share Steve Webb explains why over a million workers need to know about it, and what to do. Read the full policy paper Download Our new policy paper explains why the lifetime allowance (LTA) is set to change from being a concern...

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    News

    Blog

  • Lifetime allowance: our top five frequently asked questions - Royal London for advisers

    Lifetime allowance: our top five frequently asked questions Fiona Hanrahan 24 September 2018 Following on from last month’s top five questions on death benefits we thought we’d share our top five most frequently asked questions on the lifetime allowance (LTA). From a tax point of view which option...

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    News

    Blog

  • Fixed protection - Royal London for advisers

    Fixed protection Fixed protection maintains the lifetime allowance at a certain level depending on which fixed protection the individual has. There are now three different versions. Key facts Fixed protection 2012 maintains the lifetime allowance of £1.8 million. Fixed protection 2014 maintains...

  • Lifetime allowance - opt in or out of a scheme - Royal London for advisers

    Lifetime allowance - opt in or out of an employer's pension scheme A case study about somebody who needs to decide whether to opt out of their employer's defined contributions scheme as they are close to the lifetime allowance. Steven lives in England, is a 40% taxpayer aged 55, with pensionable...

  • Protection of scheme specific tax-free lump sum - Royal London for advisers

    ...was based on the amount of tax-free lump sum at 5 April 2006 increased in line with the lifetime allowance. On the 6 April 2012 the lifetime allowance reduced from £1.8 million to £1.5 million but so as not to disadvantage these members, it has effectively been maintained at £1.8 million...

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    Information and guidance

  • Pension case studies - Royal London for advisers

    Case studies Often a case study can help bring a technical point to life. Benefit options and lifetime allowance Emergency rate tax Lifetime allowance - opt in or out of an employer's pension scheme Lifetime allowance charge Lifetime allowance at age 75 case study Lifetime allowance charge – excess...

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    Pension freedom

    Auto enrolment

    Information and guidance

    ...

  • Tax-free cash protection on transfer - Royal London for advisers

    ...through scheme specific tax-free cash protection. Protection means that the tax-free cash amount can be increased. Although the lifetime allowance has reduced since its highest level of £1.8 million in 2010/12, the tax-free cash sum is still increased by 20% (1.8m/1.5m). If in the future...

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    Information and guidance

  • Pensions A to Z - Royal London for advisers

    ...schemes (DWP) Automatic enrolment - our top five questions  B Bankruptcy and pensions Basic State Pension Benefit crystallisation events and the lifetime allowance charge C Capped income drawdown and review dates Carry forward Carry forward in the 2015-16 transitional year Carry forward of unused annual...

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    Pension freedom

    Auto enrolment

    Information and guidance

    ...

  • Pension protection FAQs - Royal London for advisers

    ...or eliminate the chance that a lifetime allowance charge will apply. The amount of tax-free cash that they built up before 6 April 2006 can also be protected. The tax-free cash is protected as a monetary amount if it exceeded £375,000 (25% of the lifetime allowance on 6 April 2006). The amount payable...

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    Frequently asked questions

  • 2013 Budget Summary - Royal London for advisers

    ...that the Chancellor has resisted the temptation to reduce further the annual allowance and lifetime allowance limits. The proposal to allow pension schemes to invest in residential property (albeit in a restricted way) would have to be carefully designed to ensure that there are no unwanted consequences...

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    Information and guidance

  • UFPLS explained - Royal London for advisers

    Uncrystallised funds pension lump sums explained One of the options available to individuals with money purchase benefits is to take an uncrystallised funds pension lump sum (UFPLS). Key facts The individual must usually be over age 55. They must have some unused lifetime allowance. It is only...

  • Budgets and Acts - Royal London for advisers

    Budget Summary Income tax – personal allowance increase Lifetime ISA – announcement ISA – overall maximum contribution increase Help to save – initiative for low incomes Annual allowance – confirmation Technical amendments to support pension flexibility Dependant scheme pension – authorised limit...

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    Information and guidance

  • Death benefits pre 6 April 2015 overview - Royal London for advisers

    ...important to note that a tax charge would have applied to any lump sum death benefit payable in excess of :   the standard lifetime allowance (SLA), or the personal lifetime allowance (PLA) if primary protection had been chosen, or the 'benefits value' (for example the fund value) if enhanced protection...

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    Information and guidance

  • Primary and enhanced protection - Royal London for advisers

    Primary and enhanced protection It was possible to protect pension benefits built up before 6 April 2006 (A-Day) from a lifetime allowance charge by applying for primary and enhanced protection. It was possible for members of pension schemes set up before 6 April 2006 to protect the benefits...

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    Information and guidance

  • Why paying a tax charge isn’t always a bad thing - Royal London for advisers

    . options for doctors - a look at the proposed 50:50 option in response to adviser queries. This packed interactive paper also explains how paying annual and lifetime allowance tax charges can still make your clients better off in retirement, and… digs deeper into the options for paying these charges...

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    News

  • Pension protection - Royal London for advisers

    Pension protection Lifetime allowance protection It is currently possible to protect benefits from a lifetime allowance charge as a result of the lifetime allowance being reduced (which the Government like to do quite often). This protection has the effect of locking the lifetime allowance...

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    Information and guidance

  • HMRC Pensions Tax Manual - Royal London for advisers

    PTM050000 Annual allowance: contents PTM060000 Member benefits: contents PTM070000 Death benefits: contents PTM080000 The lifetime allowance and the lifetime allowance charge: contents PTM090000 Protection from the lifetime allowance charge: contents PTM100000 Transfers: contents PTM110000 International...

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    Pension freedom

    Auto enrolment

    Information and guidance

    ...

  • Autumn Statement 2012 - Royal London for advisers

    ...of protection from the lifetime allowance charge that already exist, they were obviously running out of ideas of what to call this new protection and all they could come up with was 'fixed protection 2014'. This will allow individuals to apply to retain a lifetime allowance of £1.5 million after 6 April 2014...

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    Information and guidance

  • Pensions & Divorce - frequently asked questions - Royal London for advisers

    Pensions & Divorce - frequently asked questions Q: How is a pension sharing order received before 6 April 2006 treated? A: Anyone who had received a pension sharing order before 6 April 2006 was able to apply for an increase in the lifetime allowance to offset any 'pension credit' entitlement...

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    Frequently asked questions

  • Overseas - frequently asked questions - Royal London for advisers

    ...can. In fact her personal lifetime allowance can be enhanced by the same percentage as the transfer value bears to the standard lifetime allowance at time of transfer if the transfer is from a QROPS. So if the transfer value was £107,310 and she transferred now, when the lifetime allowance...

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    Frequently asked questions

  • Pre Budget Report 2008 - Royal London for advisers

    ...insurance contributions All national insurance contribution rates will be increased by 0.5%. The primary threshold at which individuals start to pay NICs will also be increased so that it is aligned with the personal allowance. 6 April 2011 Lifetime allowance The lifetime allowance will be maintained...

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    Information and guidance

  • HMRC Pension Schemes Newsletters - Royal London for advisers

    This includes information on the following: Annual allowance Lifetime allowance protections Lifetime allowance and benefit crystallisation event calculations Paying the lifetime allowance charge Newsletter 116 – January 2020 This includes information on the following: Pension flexibility statistics Pension...

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    Information and guidance

  • DB transfers – three things to think about - Royal London for advisers

    . There are three themes in the queries we receive on the subject: Lifetime allowance and protection Equalisation Guaranteed Minimum Pension (GMP) This is a complicated area of advice and the queries we’re receiving fall under three themes:  Lifetime allowance and protection Equalisation Guaranteed Minimum Pension...

  • Overseas transfers - Royal London for advisers

    ...or the lifetime allowance! HMRC – Pensions Tax Manual: PTM131000 Taxation of unauthorised payments Is there a difference between uncrystallised and crystallised rights? Unlike a recognised transfer between two UK registered pension schemes, a transfer from a UK scheme to a QROPS is a benefit...

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    Information and guidance

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The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.