Stand-out Q – overseas pension…
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An individual accrued all their pension rights in a recognised overseas pension scheme, and did not benefit from UK tax relief, which they then transferred to a registered pension scheme on their return to the UK. The lifetime allowance enhancement factor (LTAEF) gives them a current personal lifetime allowance (LTA) of £2 million; what is the maximum pension commencement lump sum they can take if they have no other form of LTA protection?
The individual would only be entitled to 25% of the crystallised amount, subject to a maximum of 25% of the standard lifetime allowance, i.e., 25% of £1.03m at present, or £257,500.
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