HM Revenue & Customs (HMRC) has published guidance following the Spring Budget on Wednesday – telling administrators they should continue to administer lifetime allowance (LTA) checks but confirming those with protections would now be able to accrue further benefits.
In its pensions schemes newsletter number 148 for March 2023, published last week (16 March), HMRC confirmed the chancellor's Budget announcement that the lifetime allowance (LTA) charge would be removed from 6 April 2023 and the LTA would be fully abolished from the 2024/25 tax year through a future finance bill. It reminded stakeholders that the LTA framework would therefore "remain in place" from 6 April 2023, telling pension scheme administrators they would need to continue to operate LTA checks when paying benefits, for example assessing whether an individual has available lifetime ...
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