On 29 November 2023, a Finance Bill was published with nearly 100 pages taken up with all the necessary detail to carry out the abolition of the Lifetime Allowance and introduce two separate caps on tax-free lump sums that take effect from 6 April 2024. As expected, the Bill also includes details of the transitional arrangements for those who have only drawn part of their benefits.

This is a significant change to one of the corner stones of the current tax regime that was introduced in 2006. Given the complexity involved, the new Bill allows for possible further amendments to be made into 2026. So we may see other changes over the coming years as practical issues are identified.

The implementation date of 6 April 2024 will be before the earliest likely date for the next General Election, also expected next year. The Labour Party is opposed to the abolition of the Lifetime Allowance and has previously promised to reintroduce it, although that will now have its own challenges. So we may see more changes again.

In this update we look at:

• Changes taking effect from 6 April 2024
• Reminder of the changes announced in the 2023 Spring Budget
• HMRC online services – migration to the “Managing Pension Schemes” service - Action required
• Regulatory reporting requirements 2022/23

Speak to our experts Peter Clarke or Patrick Moriarty for more information.