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  • Civil Service Pensions’ Transitional Tax-Free Amount Certificates hub

    Topics:
    • Working in the Northern Ireland Civil Service, 
    • Key sections and resources for NICS Pension Schemes Members

    From 6 April 2024, HMRC has abolished the Lifetime Allowance, introducing two new allowances: the Lump Sum Allowance, and the Lump Sum and Death Benefit Allowance.
    This Transitional Tax-Free Amount Certificates hub provides you with all of the information, background on the changes and how you can apply for a Transitional Tax-Free Amount Certificate (TTFC) if you're eligible.

    HMRC Qualification Tool

    You can also get in depth explanations of many of the terms below, and check if you can apply for a transitional tax-free amount certificate via the new tool on the HMRC website.

    HMRC qualification tool

    What’s Changing

    From 6 April 2024, HMRC has abolished the Lifetime Allowance, introducing two new allowances: the Lump Sum Allowance and the Lump Sum and Death Benefit Allowance.

    Any Lifetime Allowance used before 6 April 2024 counts towards your available Lump Sum Allowance after this date.

    The new rules assume that you took the maximum 25% of each benefit crystallisation event as tax-free cash before 6 April 2024, regardless of the actual amount taken.

    If you took less than the 25% tax-free cash or meet other specific conditions, a tailored assessment of your Lump Sum Allowance might benefit you.

    To get this tailored assessment, you need to apply for a Transitional Tax-Free Amount Certificate TTFC. Any pension scheme you have benefits with can issue this certificate.

    You must apply for a TTFC before you first access any of your pension scheme benefits after 6 April 2024.

    TTFCs are issued at the member level, not the scheme level. You can only apply to one scheme, but it will cover benefits paid from all your pension schemes. 

    If you require information about your NICSPS benefits to support an application for a TTFC with another scheme, please contact us at cspensions@finance-ni.gov.uk 

    Important - Once the TTFC is issued it will always apply and you will not be able to revoke it. It can be cancelled by a scheme administrator if it is found to be incorrect. 

    Before you apply 

    If you’re applying for a Transitional Tax-Free Amount Certificate TTFC, please read the information sheet and the relevant section of HMRC’s Pensions Tax Manual first to ensure you're eligible and have all the information you need.

    Save a copy of the information sheet for future reference.

    The application form includes technical terms defined in the Information Sheet's Glossary.

    Contact any other schemes you’ve received benefits from to get the required evidence before starting. You can't submit your application without these attachments.

    Civil Service Pensions cannot contact other schemes on your behalf.

    You won’t need to submit supporting evidence if the only benefits received are from the Northern Ireland Civil Service Pension Scheme.

    There’s a checkbox on the form to confirm this applies to you. You’ll need to confirm you’ve read and understood the eligibility criteria, and that the evidence you submit is complete and accurate.

    HMRC Tax Manual 

    TTFC Information Sheet 

    How long does it take

    The regulations state that, when a scheme receives an application from an individual, they must either issue a certificate (if the application is valid) or provide the applicant a notice of refusal within 3 months of receipt.

    Civil Service Pensions will respond to TTFC applications within 55 working days.

    We aim to respond within 10 working days for requests for information to support an application from another scheme, but in some cases, this may take longer.

    We’re sorry, but we can’t expedite applications.

    Apply for a Transitional Tax-Free Amount Certificate

    If you've read the above information and would like to apply for a Transitional Tax-Free Amount Certificate TTFC, then you can apply here. Please choose the appropriate application form.

    Are you applying on behalf of yourself?

    TTFC Member Application

    Are you applying on behalf of someone else?

    TTFC Personal Representative Application

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