Abolishing the lifetime allowance might have been a simple statement to make for the chancellor but it is proving complicated to put into practice, writes Beth Joslyn
The lifetime allowance (LTA) will be abolished from April 2024. Announced in the Chancellor's Spring Budget, this seemingly simple statement is proving complicated to put into practice. In July, 41 pages of draft legislation were published setting out the intial attempt from HM Revenue & Customs (HMRC) at replacing this bedrock of pension legislation with a new regime. Replacing the LTA will be two new allowances that lump sums will be tested against: a lump sum allowance of £268,275 and a lump sum and death benefits allowance (LSDBA) of £1,073,100. Broadly, lump sums in excess of ...
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