HM Revenue & Customs is implementing the abolition of the Pensions Lifetime Allowance (LTA), a long-standing cap on tax-relieved pension savings. The reform involves amending regulations under the Finance Act 2004 to remove the charge and associated administrative requirements for registered pension schemes.
This tax information and impact note is about updates to the current power to permit regulations laid in the 2025 to 2026 tax year to take effect for the 2024 to 2025 tax year.
In response to: Abolition of the Lifetime Allowance from 6 April 2024
This tax information and impact note is about abolishing the Lifetime Allowance (LTA).
In response to: Abolishing the pensions lifetime allowance
This measure delivers the changes necessary to abolish the pensions lifetime allowance from the tax year 2024 to 2025 onwards, as announced at Spring Budget 2023.
This measure ensures that no-one will face a Lifetime Allowance charge from April 2023. It increases the Annual Allowance, Money Purchase Annual Allowance, Tapered Annual Allowance, and the adjusted income for the Tapered Annual Allowance.
This measure addresses the pensions tax and Corporation Tax consequences of court directed write-downs under proposed new section 377A of the Financial Services and Markets Act 2000 and any subsequent court-ordered variation or termination of write-down orders.
In response to: Setting the standard Lifetime Allowance from 2021 to 2022 to 2025 to 2026
This tax information and impact note is about setting the standard lifetime allowance to 2025 to 2026
This tax information and impact note details the reduction of the money purchase annual allowance (MPAA).
This applies to individuals whose total UK tax relieved pension savings are near to or more than £1 million.
This tax information and impact note will mainly affect individuals with income of over £150,000, including the value of any pension contributions, who save in a registered pension scheme.
Draft legislation on changes to the taxation of annuities paid to beneficiaries as announced by the Chancellor in Autumn Statement 2014.