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Lifetime Allowance - idea
Tyrion Lannister
Posted: 27 May 2018 21:35:04(UTC)

Joined: 03/03/2017(UTC)
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DCB;62775 wrote:
I may well be in the fortunate position of challenging the SIPP LTA limit of £1.03m in a few years time.
The prospect of a 55% tax charge at the age 75 test or before does not appeal and I wonder if it might be possible to reduce growth in the SIPP by investing in safest ZDP shares. These would be timed pay to no income before age 75 therefore control capital growth in the SIPP.
They could be sold , taking the capital growth , post age 75 when all the tests are done with and LTA no longer bites?
Sounds too easy to be true so probably is!
I am sure some of the people on this forum smarter than me will know the anwers

I can concur with Julian (post #15), this is exactly what my IFA told me.

Assuming you are over 55 and crystallise before exceeding the LTA that is.


Just to add, you could reinvest the money by maxing your ISA allowance and the rest in a standard fund and share account.
1 user thanked Tyrion Lannister for this post.
J Thomas on 27/05/2018(UTC)
Posted: 28 May 2018 07:51:58(UTC)

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Thanks for all the replies.
I like Julian's suggestion which the IFA I saw did not mention.
Slight variation is that I have previously take a 25% PCLS of £227,810 which used 72.89% of the LTA at the time.
Presumably I will be able to have another bite of tax free with-drawl using the 27.11% of LTA remaining?
However will that be 27.11% of the £1m LTA at the time or 27.1% of the £1.03m prevailing now?
Money Spider
Posted: 28 May 2018 20:14:41(UTC)

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My understanding/experience is that:

At each Benefit Crystallisation Event (BCE) you use up a percentage of your LTA (as a %'age, not a ££ amount). At the next BCE you may use up the remaining percentage (or part of it) of the then LTA (or your protected LTA).
So, in your example, the LTA will be £1.03M.
alan simmons
Posted: 29 May 2018 12:21:40(UTC)

Joined: 29/05/2018(UTC)
Posts: 5

Lifetime allowance What is the current pension lifetime allowance? The lifetime allowance or LTA is the limit the government has set for the value of funds that
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