Removal of Lifetime Allowance

New pension rules proposed from 6 April 2024 have now received Royal Assent, confirming the abolition of the Lifetime Allowance (LTA) and bringing with it some of the largest changes to pension tax rules for several years. The draft legislation setting out the proposals was only published late last year and the industry is still awaiting further guidance from HMRC on some key areas to allow it to understand the full scope of change necessary.

We are currently reviewing and updating Wrap and Elevate processes and literature to ensure that the changes in legislation are reflected across our pension products. We are working hard to be ready for 6 April 2024 but given the extent of the changes and the remaining ambiguity there may be some areas where we are unable to make the appropriate changes in time, for example some of our supporting documents may continue to refer to Lifetime Allowance in the short term. Please be assured that our priority for implementing change is focused on areas where there is greatest customer impact.

We are working towards implementing the changes to our Elevate platform by 6 April so please ensure that all in-progress new business wizards are completed ahead of this date to ensure you don’t need to re-key any data.

There are a number of resources available on the LTA section of our website to support you in preparing your clients for the changes. Here you can find frequently asked questions relating to the removal of LTA, and the latest news and guidance information from Techzone. These pages will be updated regularly with new information as it becomes available.

Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.