I have a pension that is about to increase and I have been asked to fill in a form to calculate my lifetime allowance.
The pension in question is the only one that I plan to take regular payments from.
I have a SIPP that I have taken one UFPLS from (which was in the last tax year) and will in future take more from on an irregular basis.
The form refers to pension benefits I am receiving and seems to assume all pensions will be in the form of regular payments.
Am I right in thinking that the UFPLS I took was a Benefit Crystallation Event? If this is right, I assume that UFPLS of 10k represents 1% of my LTA taking last years LTA figure of £1m, and that is the figure of used LTA that should enter on the form?
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UFPLS and LTA
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Re: UFPLS and LTA
ben328 wrote:I have a pension that is about to increase and I have been asked to fill in a form to calculate my lifetime allowance.
The pension in question is the only one that I plan to take regular payments from.
I have a SIPP that I have taken one UFPLS from (which was in the last tax year) and will in future take more from on an irregular basis.
The form refers to pension benefits I am receiving and seems to assume all pensions will be in the form of regular payments.
Am I right in thinking that the UFPLS I took was a Benefit Crystallation Event? If this is right, I assume that UFPLS of 10k represents 1% of my LTA taking last years LTA figure of £1m, and that is the figure of used LTA that should enter on the form?
Yes, whatever you took out would have been "crystallised" by the UFPLS with the rest remaining uncrystallised. I would have expected that your pension provider would have provided information as to what percentage of your LTA this used up though your calculation is almost certainly correct.
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