Abolition of the Lifetime Allowance from 6 April 2024
This tax information and impact note is about abolishing the Lifetime Allowance (LTA).
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Linked documents
- Policy Paper Abolition of the Lifetime Allowance (LTA)
▤ Verbatim text from source document
At Spring Budget 2023 the government announced that it would abolish the Lifetime Allowance (LTA). Finance (No.2) Act 2023 began this work by removing the LTA charge and delivering some changes to support the removal of the charge.
This measure delivers the changes required to abolish the LTA entirely and clarifies the tax treatment of pension savings.
It clarifies:
- how lump sums and lump sum death benefits will be taxed in its absence
- the position of individuals with LTA protections
- lump sum protections or LTA enhancement factors
- the function of Benefit Crystallisation Events
- the tax treatment of transfers to qualifying recognised overseas pension scheme (QROPS) and sets out all necessary transitional arrangements and reporting requirements