Application of enhanced LTA (international) on Pension Lump sum - Emergency Code

I have an enhanced pension LTA, international (having been non UK resident), under Section 221 Finance Act 2004. I plan to do a full lump pension drawdown (this would be my first pension benefit crystallization). When the pension company applies the emergency tax code, should they take into account the enhancement - ie enabling a larger 25% tax free lump sum. (I would of course share with the pension company the certificates in advance of drawdown). regards

Hi,

If you have given the pension co the enhanced confirmation information then they should take this into account when makeing the tax free lump sum payment and advice HMRC accordigly.

Thank you.

Thank you for you response. Just to clarify. I have read that certain enhancement factors only apply to the life time charge mechanism but do not increase the PCLS itself. Could you confirm that the enhanced pension LTA, international, under Section 221 Finance Act 2004 does increase the PCLS? regards

Hi Pines12345,

Please refer to point 2 of Lifetime allowance guidance newsletter — March 2023 2. Pension commencement lump sum and lifetime allowance protections

Thank you.