Lifetime allowance charge

This image shows the position for Joe

Joe had benefits valued at £ 2,500,000.00 on his crystallisation date
The lifetime allowance was £ 1,073,100.00
His excess benefits value was £ 1,426,900.00
The lifetime allowance charge was £ 784,795.00 being 55 percent of £ 1,426,900.00
Giving a net excess benefits value of £ 642,105.00
His tax-free lump sum was £ 268,275.00 being 25 percent of £ 1,073,100.00
Plus his net excess benefits value of £ 642,105.00
Gave him a total lump sum of £ 910,380.00
His remaining benefits was for income was £ 804,825.00 being £ 1,073,100.00 less £ 268,275.00

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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.