HMRC warns about taking benefits until it fixes LTA abolition rules

Request came just two days before the LTA abolishment date

Jonathan Stapleton
clock • 1 min read

HM Revenue & Customs has advised some members to delay taking benefits or transferring pensions until it can fix incorrect legislation around the abolition of the lifetime allowance (LTA).

In a newsletter released last week (4 April),  HMRC suggested there were a number of cases where "schemes should advise members to request a delay to the payment/defer their request to transfer". HMRC said these include any case which involves scheme specific tax-free cash protection; a transfer of a case with enhanced protection; enhanced protection and primary protection cases with protected lump sum rights of more than £375,000; the payment of a lump sum death benefit from funds which crystallised prior to 6 April 2024; any transfer from drawdown to a qualifying recognised overseas pe...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

HMRC sends crypto IHT 'nudge' letters to advisers

HMRC sends crypto IHT 'nudge' letters to advisers

Reminded to include cryptoassets in IHT returns

clock 03 February 2026 • 3 min read
The time is now to prepare for IHT tax shifts in 2027

The time is now to prepare for IHT tax shifts in 2027

'The introduction of IHT on pensions represents a fundamental shift in wealth transfer planning'

James Floyd
clock 03 February 2026 • 4 min read
Clients moving overseas? Everything advisers need to consider

Clients moving overseas? Everything advisers need to consider

Robust cross-border planning essential

Daivd Morley
clock 30 January 2026 • 4 min read