Cashflow planning software provider i4C has announce d that its market leading lifetime allowance (LTA) functionality was launched on 10th February 2020.
Although likely to receive an inflationary increase in April, the LTA has reduced from £1.8m since the 2011/12 tax year to its current rate of £1,055,000. As pension funds continue to grow, more and more clients are set to be impacted by lifetime allowance charges in the future.
It is critical that a cashflow application can automatically calculate these charges and incorporate them into a client’s financial plan. LTA rules still prove to be some of the most complex faced by financial planners today and i4C’s latest enhancement caters for the full range of these, including:
- All types of LTA protection
- PCLS protection (impact of Enhanced or Primary, scheme specific)
- The ability to proportion LTA charges upon death across all pensions
- Adjustable crystallisation order
According to i4C, the new LTA functionality will save financial planners time, whilst the suite of graphs and outputs will help engage clients in LTA discussions.
Mark Harman (i4C MD) said: “It is essential that cashflow modelling application allows users to manage all of their clients on a single system. This update makes it significantly easier for our users to plan for clients with LTA consideration whilst staying true to our goal of being extremely easy to use for the simplest of clients.”