Stand-alone lump sum meaning

Consumer group Which? urged the Financial Conduct Authority (FCA) to gather detailed data on the expense to businesses of offering premium finance, and on the disparity in profits between customers who pay by monthly instalments and those who settle their premiums annually. The FCA has recognised this practice as a 'tax on the poor'. Such premium finance arrangements are typically used by people who are unable to meet annual premiums in a single lump-sum payment alone...

FORTHCOMING CHANGE HMRC intends to bring in limited technical tweaks in early 2026 to make sure the rules scrapping the lifetime allowance keep working as envisaged. These changes will tidy up provisions, fix minor drafting anomalies and support smoother implementation, taking effect retrospectively from 6 April 2024. While the majority of pension savers will be unaffected, they will resolve targeted issues including: how certain overseas lump sums paid to UK residents are treated; how crystallised rights are valued for trivial commutation lump sums; how scheme-specific and stand-alone lump sums function; and aligning enhancement factors with the position before April 2024. For more detail, see: Implementation of the abolition, below. Up to 5 April 2024, a principal constraint on building up members’ benefits under the pensions tax framework was the lifetime allowance, which limited the level of benefits that could be accumulated and taken by or in respect of an individual from registered pension schemes without triggering tax charges. From 6 April 2024, the lifetime allowance was removed, as set...