LA charge case study image 3

Benefits value at 2nd crystallisation event at 06 April 2021 was £2,650,000.00
The lifetime allowance is £1,073,100.00
Amount of benefits value required (to be crystallised) £2,650,000.00
The lifetime allowance remaining is £774,992.82 being £ 1,073,100.00 times 72.22%
Excess benefits value is £1,875,007.18
The lifetime allowance charge is £1,031,253.95 being £1,875,007.18 times 55%
Net excess benefits value is £843,753.23
The benefits taken were T-free cash of £193,748.21 being £1,073,100.00 times 72.22% times 25%
Net excess benefits value is £843,753.23
Giving a total lump sum of £1,037,501.44
Plus the value of residual benefits used for income £581,244.61 being £2,650,000.00 minus £1,031,253.95 plus £1,037,501.44