LA charge case study - image 2

Benefits value at 2nd crystallisation event at 06 April 2020

Benefits value at 2nd crystallisation event at 06 April 2020 was £2,650,000.00
The lifetime allowance is £1,250,000.00
Amount of benefits value required (to be crystallised) £2,650,000.00
The lifetime allowance remaining is £902,750.00 being £1,250,000.00 times 72.22%
Excess benefits value is £1,747,250.00
The lifetime allowance charge is £960,987.50 being £1,747,250.00 times 55%
Net excess benefits value is £786,262.50
The benefits taken were TFC of £ 225,687.50 being £1,250,000.00 times 72.22% times 25%
Net excess benefits value is £786,262.50
Giving a total lump sum of £1,011,950.00
Plus the value of residual benefits used for income £677,062.50 being £2,650,000.00 minus £960,987.50 plus £1,011,950.00

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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.