LA charge case study - image 2

Benefits value at 2nd crystallisation event

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

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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.