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Where Taxpayers and Advisers Meet

Finding an advisor for LTA and tax

Joined:Mon Feb 23, 2015 4:00 pm
Finding an advisor for LTA and tax

Postby davidxt » Tue Dec 07, 2021 11:53 am

I need professional advice for a close relative, finding matters concerning the intersection of LTA, income tax and IHT to be complex.

They have two uncrystallised pension pots in total exceeding their LTA by about £50k and growing over time even though no contributions have been made since Aug 2016 (so cannot go for protected LTA) . In good health at age 71 and with sufficient other assets not to need additional regular income via annuity or drawdown they need to manage the crystallisation of two pots additional to some small pensions in payment totaling 5% or so of their LTA, in order to minimise tax exposure.

I should like to contact a number of advisors detailing the relative's pensions in payment, the uncrystalised amounts, their other income amounts, and ask for advice to minimise tax exposure. They do not need ongoing help in executing the actions to be taken and do not seek advice on selecting investments when the funds move outside the pensions wrapper. It is the best way to take the taxfree amount and timing of crystallisation events that needs to be planned.

The uncertainty is to know from whom to seek advice: an IFA, an accountant, or a pensions advisor? Should they be local - no face to face is really needed? But if UK-wide how to choose?

I would expect that the advice could be constructed as a one-off matter. How should I seek an advisor and approximately how much will it cost?

Joined:Tue Feb 27, 2018 8:34 pm

Re: Finding an advisor for LTA and tax

Postby ben_power » Thu Dec 09, 2021 6:34 pm

An experienced IFA would be able to advise on all aspects of these, looking at the wider financial picture including tax, risk and legacy planning.

Whilst face to face is always nice in this climate most IFAs will offer video calls.

I would be reluctant to pay for this advice up front, most respectable IFAs will assess the entire situation for free in the hope that there is future business to be had. Also, be very careful with self-management and the underlying risk management of the pensions, just because something has been good to date doesn't mean it remains suitable going forward and they will be able to assess the continued suitability to all.

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