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Document Will a dependent's benefit (surviving partner pension etc) count towards a member or recipient's LTA?

Surviving partner pensions (for a widow, widower, civil partner or qualifying nominated partner) do not form part of either the deceased's or the recipient's Lifetime Allowance (LTA).
This advice would also apply to an allowance paid in respect of a dependent child. A dependent's benefit that is in payment from another scheme also does not count towards the member's or recipient's LTA.
A lump sum on death (Death Gratuity) is not a dependent's benefit. All lump sums paid on death are free of tax up to the LTA. Confirmation is sent to the deceased's personal representative of the amount of LTA used up by the lump sum and to whom it has been paid. If the lump sum is in excess of the LTA the deceased's personal representative will be liable for a Lifetime Allowance Charge at 55%. It is for the deceased's personal representative to inform HMRC of the amount of lump sum paid and to arrange for any lifetime allowance charge to be paid to HMRC.

death benefits, lta, dependent's benefits, life time allowance, child allowance, lifetime allowance

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