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Where Taxpayers and Advisers Meet

Do I need to claim to retain the £1.25M LTA.

Treggy
Posts:17
Joined:Fri Mar 31, 2017 11:46 pm
Do I need to claim to retain the £1.25M LTA.

Postby Treggy » Tue Oct 24, 2017 6:10 pm

I have 4 final salary and 2 money purchase pensions, commenced between 2011 aged 62 and 2014 aged 65. These use up 97% of my £1.25M LTA. With the LTA now reduced to £1M I exceed the new allowance. Some advice is that I must apply to HMRC to retain the £1.25M LTA, whilst some is that the LTA percentage is frozen at the £1.25M and there is no need to apply. Getting it wrong will incur a higher tax on the amount over the £1M LTA. Advice please.

AnthonyR
Posts:322
Joined:Wed Feb 08, 2017 2:33 pm

Re: Do I need to claim to retain the £1.25M LTA.

Postby AnthonyR » Fri Oct 27, 2017 11:34 am

First the silly, but required disclaimer (since I use my real name). I'm not a financial advisor (as is the case for most of us here), so don't take this as any kind of recommendation as to whether you should or shouldn't do this.

But to get the protection, you need to apply for fixed or individual protection 2016 here:

https://www.gov.uk/guidance/pension-sch ... -allowance

There's some decent guidance on the process here if you want more info: https://www.aegon.co.uk/support/faq/pen ... n-faq.html
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk


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