Actions to avoid breaching Lifetime Allowance
Can I take actions to avoid breaching Lifetime Allowance limits:
1. Check to see if your trustees have already applied for Protection.
2. Obtain up to date values and Cash Equivalent Transfer Values from scheme trustees along with projected income and fund statements. (See Be Aware in our Defined Benefits page).
3. Take action prior to April 2016 if your funds are already close to or exceeding £1,000,000.
4. If your pensions are worth £1,250,000 or more as at 5th April 2014, apply for Individual Protection 2014 before April 2017.
5. Consider the various options available in calculating the best method of crystallising funds.
6. Crystallise benefits at the point at which those benefits remain below the Lifetime Allowance!
8. Existing pension contributions may be put towards other tax efficient investments instead of pension funding.
9. Consider taking parts of your pension rather than the whole pot, and delay tax until the point of death.
Do not under any circumstances obtain advice on Defined Benefit (Final Salary) schemes from non-regulated advisers outside the UK, and be extremely cautious about using advisers that require “signing off” by another firm, especially where those firms are operating or linked to TVAS calculations from places outside the UK. The worst examples we have seen have come from Switzerland, Spain, Isle of Man (IOM) and Gibraltar.