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18 October 2022
Reporting lump sum and pension in self assessment.
Lifetime allowance
My client died in November leaving pension pots to the value of £2.2m. The lifetime allowance was fixed at £1.816m so that there is an excess pot to be taxed.
I understand that the scheme administrators no longer deal with the tax compliance on death and this falls to the personal representatives to manage. The bulk of the funds are being paid as a lump sum but one fund is going to be paid to the husband as a pension.
In completing the final self-assessment return how will the lump sum and pension in excess of the lifetime allowance be reported?
Query 20 019 – McCoy.
The individual beneficiaries will pay the LTA tax charge.
In providing a response to McCoy’s query I am assuming they are asking about the entries to go on their deceased client’s tax return to the date of death...
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