Forum for former BBC staff

Forum for former BBC staff
http://www.ex-bbc.net/cgi-bin/yabb/YaBB.pl >> Pensions >> BBC DB pension now uses up LSA tax free allowance? http://www.ex-bbc.net/cgi-bin/yabb/YaBB.pl?num=1744629378 Message started by Grant_C on Apr 14^th, 2025, 11:17am

Title: BBC DB pension now uses up LSA tax free allowance?
Post by Grant_C on Apr 14^th, 2025, 11:17am

I started to take my BBC pension a few years ago. I took no tax free cash. At commencement, I received a notification of what % of my lifetime allowance this had used up. So far, so good.

In my most recent P60 letter however, I've now been told my pension also counts towards the total Lump Sum Allowance I can take, which is the total amount of tax free cash I can take from my various DB/DC schemes. In fact, it takes up a fair chunk of it.

I queried this with the pension department as I thought it must be a mistake, since I didn't take any tax free cash, but they said no, taking a final salary pension in this way does indeed now use up your tax fee allowance, even if no tax free cash was taken. Apparently the rules changed last year? The guy I spoke to said quite a few people had callled to query this.

Has anyone else experienced this? Or better still, can you explain it?!

Title: Re: BBC DB pension now uses up LSA tax free allowance?
Post by Grant_C on Apr 18^th, 2025, 5:03pm

To follow up on my own post, it does indeed now count against your lifetime tax free allowance. So if you have a BBC pension and also a SIPP or other pension, it is worth reading up on the rules, as you will be affected.