Help Centre/Tutorials/How to add a planned lump sum

How to add a planned lump sum

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Summary

Planned Lump Sums are one-off additions to a specific account — inheritance, a bonus, or property sale proceeds — entered in today's money, gross.
A lump sum into an ISA that exceeds the annual ISA allowance is flagged with a warning, since the engine doesn't currently enforce the cap.
Lump sums can be linked to a property sale so proceeds and estate figures hand off cleanly on the IHT tab.

Steps

1. Open the account you want to add the lump sum to, and scroll to Planned Lump Sums.

2. Add the age it lands, the gross amount (in today's money), and whether it's inflation-adjusted.

3. If it's going into an ISA and exceeds the annual ISA allowance, you'll see a warning — the simulation doesn't currently cap ISA contributions, so consider splitting the excess into a GIA or spreading it across multiple lump sums.

4. If the lump sum is property sale proceeds, use the Property sale / disposal dropdown to link it to the property — this keeps the property's Sale / Completion Age and the lump sum's age in sync on the IHT tab.

Example scenarios

"I'm expecting a £50,000 inheritance at age 58"

Add a lump sum on the account you'll hold it in, set the age to 58 and the amount to £50,000. If it's an ISA and the amount is above the annual ISA allowance, you'll see a warning that the simulation will model it as fully tax-free rather than capping it at the real-world limit — consider putting the excess in a GIA or spreading it across more than one lump sum.

"I'm selling my rental property and want the proceeds to show up correctly"

Add the lump sum on the receiving account, then use the Property sale / disposal dropdown to link it to the property, and set the lump sum's age to match the property's Sale / Completion Age exactly — see How to model selling a property for the full walkthrough.

Frequently asked questions

Does the amount I enter need to be net or gross?

Gross, in today's money.

What happens if my ISA lump sum is bigger than the annual allowance?

You'll see a warning — the simulation currently models it as fully tax-free rather than capping it, so in reality only the annual allowance could go into an ISA that tax year. Consider a GIA for the excess, or spreading it across multiple lump sums in later years.

Can I link a lump sum to a property sale?

Yes, via the Property sale / disposal dropdown on the lump sum — this keeps the property and its proceeds in sync on the IHT tab.