On-Demand Events
Quite simply – the new pension allowances
18 Apr 24 4 min read
It seems like only yesterday the Chancellor stood up in parliament and announced the abolition of the Lifetime Allowance (LTA). From 6 April we’ll be in the new world of Lump Sum Allowance and Lump Sum and Death Benefit Allowance. No need to worry about what you need to do by 6 April as that date will be in the past. Things have gotten simpler.
Les Cameron (Head of Technical, M&G Wealth)
On this event the M&G Wealth Technical Team will set the complex aside – no pre-2006 pensions, no LTA protections, no Standalone Lump Sums and they’ll also look at the mainstream application of the new allowances for the majority of clients.
What will your clients' allowances be? How are they used up? And what should you look out for?
90 minute video (approximately) I Structured CPD accredited by CII
Learning outcomes
The session qualifies for up to 90 minutes structured CPD accredited by CII and by the end you'll be able to:
- Describe how to establish the starting Lump Sum and the Lump Sum and Death Benefit Allowances for your clients
- Explain how the new allowances are used up
- Identify the key financial planning considerations for your clients
Claiming your CPD
To claim your CPD certificate, test your knowledge with the questions below.
Write down your answers to each of the following questions and check your answers when you click to claim your CPD certificate on the link below
1. How will death benefits for those that die over the age of 75 (and the benefits are settled within 2 years) be taxed?
a) Tax free up to remaining LSDBA, then marginal rate of the recipient thereafter
b) Tax free up to the remaining LSA, then marginal rate of the recipient thereafter
c) Taxable in full at the beneficiaries’ marginal rate
d) Tax free entirely
2. True or false: A small pot payment will use up LSA or LSDBA.
a) True
b) False
3. If a client has a Lifetime Allowance Enhancement Factor and is taking an UFPLS, how much of this payment can be tax free (within LSA and LSDBA)?
a) 0 - 25%
b) 25%
c) Above 25%
d) An UFPLS cannot be paid in this situation
4. Bob has protected tax free cash of £40,000 and £12,000 of LSA available. How much tax-free cash can he receive?
a) £10,000
b) £12,000
c) £40,000
d) £8,000
To claim your CPD certificate, test your knowledge with the questions below.
Write down your answers to each of the following questions and check your answers when you click to claim your CPD certificate on the link below
1. How will death benefits for those that die over the age of 75 (and the benefits are settled within 2 years) be taxed?
a) Tax free up to remaining LSDBA, then marginal rate of the recipient thereafter
b) Tax free up to the remaining LSA, then marginal rate of the recipient thereafter
c) Taxable in full at the beneficiaries’ marginal rate
d) Tax free entirely
2. True or false: A small pot payment will use up LSA or LSDBA.
a) True
b) False
3. If a client has a Lifetime Allowance Enhancement Factor and is taking an UFPLS, how much of this payment can be tax free (within LSA and LSDBA)?
a) 0 - 25%
b) 25%
c) Above 25%
d) An UFPLS cannot be paid in this situation
4. Bob has protected tax free cash of £40,000 and £12,000 of LSA available. How much tax-free cash can he receive?
a) £10,000
b) £12,000
c) £40,000
d) £8,000
Before collecting your certificate, please take a moment to provide us feedback on this session, please email prudential.distribution.team@prudential.co.uk
Complete the form below and we’ll email your CPD confirmation to you. Please use the email address that you would usually use when contacting us.
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