Should a client apply for a TTFAC?

Where an individual took pension benefits under the old Lifetime Allowance (LTA) system, then their starting allowances under the LTA replacement regime will be reduced. However, if that person took less of their benefits as tax-free lump sums than assumed under the standard transitional calculation, then they can request a Transitional Tax-free Amount Certificate (TTFAC). Where granted, this overrides the default rules and allows the individual to take a bespoke approach to the availability of their remaining Lump Sum Allowance (LSA) and Lump Sum and Death Benefit Allowance (LSDBA).

The following chart is a rough guide to whether any given client should request a TTFAC or not. It assumes the individual has not received a serious ill health lump sum payment and/or no pension death benefits have been paid in respect of the member. Please note that there may be additional circumstances where the client (or their personal representatives) may wish to apply for a TTFAC. For example, where the individual reached age 75 prior to 6 April 2024 and lifetime allowance was used as a result.

• Application can be made to any pension scheme where the individual is a member
• Application can be made post-death by personal representatives
• Complete and accurate records for all benefits taken must be provided
• Application must be made before the first Relevant Benefit Crystallisation Event

• ​​​​​​​ TTFAC Information Request Form