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Making light work of the Lifetime Allowance

Check your answers

1. The difference in LTA charge between retaining in pension and taking as a lump sum is

a. 10% 

b. 20%

c. 30%

d. 40%


2. LTA charges arising on a members death are paid by 

a. the scheme

b. the beneficiaries

c. the personal representatives

d. any of the above


3. Bob moved £500,000 after Pension Commencement Lump Sum (PCLS) into drawdown.  He had a fund value of £600,000 by his 75th birthday and had taken £150,000 of income.

The amount tested against the LTA at age 75 is

a. £100,000

b. £500,000 

c. £650,000 

d. £750,000


4. Sandi was offered a scheme pension of £10,000 per annum.  She commuted some of this for PCLS of £20,000 and a pension of £8,000.

How much LTA did she use

a. £160,000 

b. £200,000

c. £28,000 

d. £180,000

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