The Finance (No.2) Act 2023 abolished the Lifetime Allowance charge, but the legislative framework is now being removed through the Finance Bill 2023/24. Note, however, that the Labour Party has stated that it would reinstate the charge. From 6 April 2023, Benefit Crystallisation Events are essentially ignored, and pensions are now taxed only on withdrawal, at the individual’s marginal rate of income tax. The Finance Bill contains much new terminology and many provisions, including in relation to Lifetime Allowance Protections, lump sums, death benefits, transfers to qualifying overseas pension schemes, civil service pensions, and administrative changes.
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The Finance (No.2) Act 2023 abolished the Lifetime Allowance charge, but the legislative framework is now being removed through the Finance Bill 2023/24. Note, however, that the Labour Party has stated that it would reinstate the charge. From 6 April 2023, Benefit Crystallisation Events are essentially ignored, and pensions are now taxed only on withdrawal, at the individual’s marginal rate of income tax. The Finance Bill contains much new terminology and many provisions, including in relation to Lifetime Allowance Protections, lump sums, death benefits, transfers to qualifying overseas pension schemes, civil service pensions, and administrative changes.
If you are not a subscriber, subscribe now to read this content.
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