Adviser insight on transitional tax-free amount certificates

'A blanket approach should not be taken'

clock • 4 min read

Advisers should proceed with caution when it comes to transitional tax-free amount certificates, writes Lisa Webster

The basic premise of the new pension rules coming in from April is very simple - only lump sums are tested. We have a new lump sum allowance (LSA) that restricts tax-free lump sums in life and the lump sum and death benefit allowance (LSDBA) that restricts lump sum death benefits (and serious ill-health lump sums). For those who have not yet accessed benefits and will only do so under the new regime, calculations are simple, and once your allowance is used up, it's used up. Where things have been overly complicated by HM Revenue & Customs (HMRC) are the transitional arrangements. U...

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