- days to April 2027◆Finance Act 2026 takes effect 6 April 2027◆BPR qualifying period is 2 years · act now to start the clock◆Finance Act 2026 · Royal Assent 20 March 2026. April 2027 is now less than 12 months away. For clients over 75, income tax on death benefits can be eliminated from the day of transfer. The 2-year BPR clock starts immediately.◆- days to April 2027◆Finance Act 2026 takes effect 6 April 2027◆BPR qualifying period is 2 years · act now to start the clock◆Finance Act 2026 · Royal Assent 20 March 2026. April 2027 is now less than 12 months away. For clients over 75, income tax on death benefits can be eliminated from the day of transfer. The 2-year BPR clock starts immediately.◆

Lifetime Private Income Service - Illustration Tool

Lifetime Private Income Service Calculator

This models the two benefits of the FLA for non-pension capital: a tax-efficient income during life, and the estate-planning (IHT) position on death. Enter the client’s details to begin.

Illustrative tool. Both sections are live. Income figures are drawn from the provider’s illustration table by the client’s age and amount invested; the calculator applies the UK income tax bands to the taxable portion. The estate section models the Business Relief position.

Client age at outset

Amount to invest (non-pension capital, £)

1. Tax-efficient income

A portion of each year’s income - the tax-exempt sum - is paid free of UK income tax, set at outset under HMRC’s purchased life annuity partial-exemption rules (IPTM4330). The size of that tax-free slice depends on the client’s age and the amount invested. Income above the tax-exempt sum is taxed as savings income at the marginal rate.

Other taxable income in the year (£)

Gross income and the tax-free (tax-exempt) sum are taken from the provider’s illustration by the client’s age and amount invested (set in the inputs at the top of the page). Ages between those in the table are interpolated. Income above the tax-exempt sum is taxed as savings income at the marginal rate, using the UK income tax bands below.

Gross annual income-

Tax-free (tax-exempt sum)-

Taxable portion-

Income tax due-

Net annual income-

UK income tax bands 2026/27 used above: personal allowance £12,570 (0%); basic rate 20% to £50,270; higher rate 40% to £125,140; additional rate 45% above. Income figures use the provider’s illustration table (per £1,000,000 invested, scaled to the amount and interpolated between ages). Savings-specific allowances (personal savings allowance, starting rate for savings) are not modelled - confirm with a personalised illustration.

2. Estate planning - Inheritance Tax

Held outside the FLA, non-pension capital typically sits within the taxable estate. Through the FLA’s optional Preference Share, the remaining value qualifies for Business Relief after two years - 100% on the first £2.5m of qualifying assets and 50% on the excess (from 6 April 2026).

Without the FLA

Capital in the estate - IHT at 40%

With the FLA - after 2 years (BPR)

Preference Share - Business Relief

Potential IHT saved: - (after the two-year qualifying period)

Illustrative only. The IHT figure assumes the capital would otherwise be fully within the taxable estate above available allowances and taxed at 40%; individual estates and reliefs vary. Business Relief is assessed by HMRC on death and is not guaranteed. Figures are provided through [Firm Name] (FCA No. [FCA No.]); the FLA is issued by [Provider]. Appropriate independent financial advice should be taken before any decision is made.