Lifetime allowance charge - Frank

This image shows the position for Frank

Frank had benefits valued at £ 2,000,000.00 on his crystallisation date
The lifetime allowance was £ 1,073,100.00
His excess benefits value was £ 926,900.00
The lifetime allowance charge was £ 231,725.00 being £ 926,900.00 times 25 percent
Giving a net excess benefits value of £ 695,175.00
His tax-free lump sum was £ 268,275.00 being £ 1,073,100.00 times 25 percent
Plus his residual benefits value for income £ 804,825.00 being £ 1,073,100.00 less £ 268,275.00
Plus his net excess benefits value of £ 695,175.00
Giving total benefits value to provide income of £ 1,500,000.00

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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.