Devilish details: Protection and the abolition of the LTA

'There are a number of subtleties to be aware of'

clock • 8 min read

The abolition of the LTA brought with it a raft of consequences for existing protections and as always, the devil is in the detail. Thomas Coughlan shares his insight on the hot topic...

The lifetime allowance (LTA) is set to be abolished on 6 April 2024 along with the transitional rules that applied during 2023/24. The expiry of last tax year's temporary regime is a simplification of sorts but the new allowances and the impact on these of transitional protection is anything but simple. From 6 April, we must get to grips with three new allowances: the lump sum allowance set at £268,275 and the lump sum and death benefit allowance and overseas transfer allowance, both of which are set at £1,073,100. Holders of LTA protection under the previous rules had a higher-tha...

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