LA charge case study - image 2

Benefits value at 2nd crystallisation event at 06 April 2021 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 T-free ash 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