LA charge case study - image 1

Benefits value at 1st crystallisation event at 6 April 2010 was £ 3,000,000.00
The lifetime allowance was £ 1,800,000.00
Amount of benefits value required (to be crystallised) £ 500,000.00
The lifetime allowance charge applied was £ 0
The benefits taken were TFC of £ 125,000.00
Being 25% of £ 500,000.00
Plus the value of the residual benefits used for income of £ 375,000.00 being £ 500,000.00 minus £ 125,000.00