Under the new Lifetime Allowance (LTA) replacement regime, one of the three new allowances is the Lump Sum and Death Benefit Allowance (LSDBA). If an individual took benefits prior to 6 April 2024 that used some or all of their LTA, their LSDBA may be reduced. Here is a rough guide from Fidelity Adviser Solutions – including a flowchart – to the tax treatment of money purchase death benefit payments.
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