“This may be beyond the capability of some LPRs who will no doubt be seeking help, and all the time that is happening the beneficiaries are waiting for payments.
“And given that not all pension schemes hold remaining funds in cash their value could fluctuate. Consequently, the valuation could change in the time the request is made to the LPR and the point at which they reply, which could be a number of weeks after.
“In that time, it’s possible that funds could increase or decrease in value meaning the tax paid by multiple beneficiaries is subject to a degree of inaccuracy where multiple payments are being made.
“While this process change appears simple, it will not benefit pension beneficiaries who, in some cases, will have to wait significantly longer to receive the money they are owed.”
An HMRC spokesperson said: “We are committed to working closely with pension providers, and others across the industry, to ensure the abolition of the lifetime allowance is implemented effectively.
"This includes regular conversations to resolve concerns that these changes may cause and ensure that the processes being put in place do not disrupt payments to beneficiaries.”
amy.austin@ft.com
