Abolition of the lifetime allowance

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

The original of this content is available on Lexis+ Practical Guidance (Pensions).

Until 5 April 2024, one of the key restrictions imposed on the accrual of members’ benefits under the pensions tax regime is the lifetime allowance, which caps the amount of benefits that can be saved and drawn by and in respect of an individual from their registered pension schemes without triggering tax charges. For more details, see the Lifetime allowance guidance note.

From 6 April 2024, the lifetime allowance is abolished in order to encourage older inactive individuals to return to work by removing a tax disincentive. This abolition is achieved in two stages: the lifetime allowance charge was abolished from 6 April 2023 but the rest of the regime framework remained in place, and the lifetime allowance and associated legislation is repealed from 6 April 2024.

This guidance note provides an overview the abolition of the lifetime allowance, the changes to the pensions tax regime with effect from 6 April

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

TAKE A FREE TRIAL

Popular Articles

Employment Tax

Loans provided to employees

Loans provided to employeesEmployers sometimes provide their employees with loans, sometimes charging interest and often not, either as part of the reward package or to help the individual meet significant expenditure. For example, it is common to provide loans for the purchase of annual travel

14 Jul 2020 12:11 | Produced by Tolley Read more

Personal Tax

Taxation of dividend income

Taxation of dividend incomeIntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash

14 Jul 2020 13:48 | Produced by Tolley Read more

Tax Returns

Employment Tax

Subsistence expenses

Subsistence expensesIntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel which is not to a permanent workplace. See the Travel

14 Jul 2020 13:43 | Produced by Tolley in association with Philip Rutherford Read more

��Ӱ��