30 Mar 2023
HMRC recently issued preliminary guidance in regard to the abolition of the pensions lifetime allowance.
At the Spring Budget, Chancellor Jeremy Hunt announced that the lifetime allowance charge will be removed from 6 April 2023. The allowance will be fully abolished from the 2024/25 tax year via a future Finance Bill, HMRC said.
However, experts have warned that it is currently not clear how the interim period between 6 April 2023 and the full abolition in the 2024/25 tax year will work.
HMRC has created a lifetime allowance working group which allows it to work closely with the public in analysing the details in relation to the full abolition of the allowance, including the impact on legislation and processes. Those interested in joining the working group should email ltaadministration@hmrc.gov.uk and put 'lifetime allowance (LTA) working group' in the subject heading.