LA charge case study - image 1

Benefits value at 1st crystallisation event

Benefits value at 1st crystallisation event was £ 3,000,000
The lifetime allowance was £ 1,800,000
Amount of benefits was £ 450,000
The lifetime allowance charge applied was £ 0

Tax-free cash of £ 112,500 was paid
Being 25% of £ 450,000
The residual benefits used for income was £ 337,500 being £ 450,000 minus £ 112,500

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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.