LA charge case study - image 2

Benefits value at the second crystallisation event was £2,650,000
The lifetime allowance was £1,250,000
Her remaining lifetime allowance remaining was £937,500 being 75% of £1,250,000 
Her excess benefits value was £1,712,500
The lifetime allowance charge was £941,875 being 55% of £1,712,500
Her net excess benefits value was £770,625
Her tax-free lump sum was £ 234,375 being 25% of her remaining lifetime allowance of £937,500
Her tax-free lump sum and her net excess benefits value of £770,625 gave her a total lump sum of £1,005,000
She also has residual benefits of £703,125 to provide an income, being £2,650,000 minus £941,875 and minus £1,005,000