- L
- Legal Entity Identifier
- A unique code required when a legal entity invests in a financial instrument such as shares, bonds, exchange traded funds and investment trusts. An example of a legal entity is a trust, or a charity.
- Lifetime allowance
- If you’ve never accessed a pension, or only accessed pensions since 6 April 2024, this won’t affect you. The lifetime allowance was a limit on the amount of pension savings you could have before a tax charge applied, known as the lifetime allowance charge. It’s now been abolished, but if you did access a pension before 6 April 2024, you should keep a record of how much allowance you used up.
- Liquidation
- This is a type of insolvency in which the company usually closes down, the assets of the business are realised and the proceeds distributed amongst the creditors in a prescribed way.
- Liquidity
- Refers to how quickly and easily an investment can be converted into cash. Some investments are more liquid than others. For example, selling a share in an investment is easier than selling a property.
- Lump sum allowance
- When you access your pension, you can usually take up to 25% of the value tax-free. The lump sum allowance limits the total amount can tax-free from all your pensions. It is set at £268,275 for most people.
- Lump sum and death benefit allowance
- This is a limit on the total tax-free lump sums that can be taken from your pensions, both in your lifetime and to your beneficiaries after your death. For most people, the allowance is £1,073,100.
Is there jargon we use that you don’t fully understand? Please email us at info@ifglpensions.com and we will add the word to our Jargon Buster.