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

Sipps: How clients can avoid common retirement planning mistakes

Sipps: How clients can avoid common retirement planning mistakes

'Retirement planning stands as a cornerstone of long-term financial well-being'

James Floyd
clock 28 April 2025 • 4 min read
Origo completes pensions dashboard connection

Origo completes pensions dashboard connection

Completed connection ahead of this week’s first deadline

Holly Roach
clock 28 April 2025 • 2 min read
HMRC repays £44m in overpaid pensions tax during Q1 2025

HMRC repays £44m in overpaid pensions tax during Q1 2025

More than £1.4bn in overpaid pensions tax recouped since 2015

Martin Richmond
clock 28 April 2025 • 3 min read