Pre ADay Pension in Payment - valuing for LTA at first post ADay BCE
Client was in receipt of DB Scheme pension prior to ADay. Looking to crystallise funds from him MP pot now - this is the first BCE post ADay.
Scheme pension initially in payment was circa £12K pa.
Scheme pension in payment immediately before BCE is £10K pa
Income drop relates to a state pension deduction under the DB scheme rules.
According to current HMRC PTM (https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm088300):
Valuing the pre-ADay BCE is 25 x 10K in this instance.
Anyone aware of any quirk in valuing pre-ADay scheme pensions where there has been a drop in income since ADay?