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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Turning data into dialogue: Helping clients visualise retirement realities

Turning data into dialogue: Helping clients visualise retirement realities

'Data is more than just a collection of figures, it's a powerful tool for engagement'

Joshua Croft
clock 20 June 2025 • 3 min read
Average pension transfer took just 11 days at tax year-end

Average pension transfer took just 11 days at tax year-end

Origo says transfer times decreased around tax year-end with half taking seven days or less

Jasmine Urquhart
clock 17 June 2025 • 2 min read
IFAs 'have role to play' in tackling 'blissful ignorance' around pensions

IFAs 'have role to play' in tackling 'blissful ignorance' around pensions

Advisers must ‘open people’s eyes to the reality’

Isabel Baxter
clock 16 June 2025 • 4 min read