Lump Sum Allowance (LSA) and Lump Sum & Death benefit Allowance (LSDBA) statements

Standard Life, provider of the Wrap SIPP, are sending Lump Sum Allowance (LSA) and Lump Sum & Death Benefit Allowance statements to remaining customers, these include customers who are over the age of 75. 

HMRC amended regulations on 18 November 2024, backdated to 6 April 2024, in relation to customers who reached age 75 before 6 April 2024, introducing an age 75 test disregard in some circumstances as explained in their Newsletter. Newsletter 165 — December 2024 - GOV.UK

Our Techzone article Tax-free cash and the 'lump sum allowance' (LSA) was also updated to reflect the amended regulations providing you with additional information. 

For figures quoted in the LSA and LSDBA statements for customers over the age of 75, Standard Life have assumed that the disregard will apply unless that customer has taken TFC from the WRAP SIPP between their 75th birthday and 6 April 2024.  You may wish to review your clients’ individual circumstances where they hold pensions elsewhere and contact us on 0345 279 1001 if you need any additional information or to check figures.