Previously on the P60 Members would have seen confirmation of the percentage of Lifetime Tax Allowance (LTA) used.
This is now replaced by ‘The Lump Sum and Death Benefit Allowance Used as at the end of the Tax year’. For those who took their pension* from 6 April 2006 to 6 April 2024, this will be the amount of LSA usage calculated using the Standard Transitional Calculation method.
If the member has applied, or will apply in the future, for a Transitional Tax-Free Allowance Certificate (TTFAC)* – see below – then that figure may be different.
The TTFAC should be considered the authoritative document. For those taking benefits from 6 April 2024 onwards, and who have not previously taken any pension benefit, it will show the actual pension lump sum taken.
*Transitional Tax-Free Allowance Certificate. A TTFAC can only be applied for if the individual took their pension between 6th April 2006 and 5th April 2024. It will confirm the amount of tax-free lump sum benefits taken before 6th April 2024 (transitional tax-free amount). The difference between the transitional tax-free amount and the Lump Sum Allowance will be the remaining tax-free lump sum amount available. Members can read more, including how to apply for a TTFAC here.
*Known as Benefit Crystallisation Event (BCE)
