Follow these 5 steps to apply for a Transitional Tax-Free Amount Certificate (TTFAC).
Public sector clients and McCloud remedy
We will not be able to issue a certificate if your client is in receipt of a public sector pension and impacted by the public service pension remedy (McCloud remedy) and their choice has not yet been implemented. Their choice could impact the tax free lump sums received before the 6 April 2024.
Please note the remedy for Local Government Pension Scheme (LGPS) pensioner members is not retrospective. This means that an LGPS pensioner can apply for a TTFAC even if the remedy hasn’t been implemented yet as there will be no change to the amount of LTA used up by LGPS benefits. If the remedy is made after the 5 April 2024 and results in more PCLS being paid that will be a relevant BCE and preclude a TTFAC from being obtained if it hadn’t been issued by that point.
See HMRC pension schemes newsletter 158 for more information.
How do I use the transitional regime calculator?
Our short video shows you what information you need and how to complete the calculator to see which calculation, either standard or transitional, would be better for you client.
We may contact you if we have any questions that require additional information. HMRC requires pension schemes to provide a certificate within 3 months of an application. We aim to provide certificates well within this timeframe.
Useful additional support material
There is a huge amount of detail to understand. Our LTA Hub is here to help you where you’ll find a range of support articles to help you understand what it means for you and your clients.