Hi
I think I know the answer but would be grateful for any advice please.
After the recent death of a relative, I stand to inherit some money that was invested. I’ve applied for the money to be paid as a lump sum and have received an email from the company including the following:
The Lifetime Allowance was abolished on 6 April 2024, however as you may be aware, there have been some challenges faced by platforms, advisers, clients, and personal representatives in navigating the new rules due to delays receiving guidance from HMRC.
On 4 April, HMRC released a newsletter in which it suggests that some beneficiaries may wish to delay taking lump sum death benefits until it can remedy incorrect legislation.
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HMRC advise that certain groups of people may wish to delay action until regulations are passed through Parliament to correct the legislation. Those affected by HMRC’s advice relate to any case which involves the payment of a lump sum death benefit from funds which crystallised before 6 April 2024. Therefore HMRC have suggested that personal representatives may wish to advise beneficiaries to delay the payment until the legislation is effective.
Now the amount is less than the lump sum allowance and as the relative was below 75 I’m thinking there are no tax implications and don’t understand why they’ve said this. Is this correct? Thank you