Pensions tax changes – getting ready for LTA-Day
Thursday 8 February 2024
6 April 2024 will mark the end of the lifetime allowance (LTA). But the LTA’s demise brings with it a number of complications, the key one being where to draw the dividing line between tax-free lump sums and lump sums subject to tax in its absence. Two new allowances, the “lump sum allowance” and the “lump sum and death benefit allowance”, are therefore set to make their debut.
With the legislation still in draft, and updates to the Pensions Tax Manual pending, this session will look at the key issues trustees and their advisers will need to get to grips with between now and April to ensure they are LTA-Day ready. It will focus on:
- how the two new allowances will work in practice and the implications for those with LTA protections
- the role of the other new authorised lump sum in town, the “pension commencement excess lump sum”, and the circumstances in which this might be available
- planned transitional arrangements for individuals who have taken benefits before the new regime comes into force, and how “transitional tax-free amount certificates” might work in practice
- when and what to communicate to members
- potential impacts on scheme benefit design and possible resulting scheme rule amendments
- updates likely to be needed to administration processes and in reporting requirements to cater for the above.
You will be able to send in your questions to be answered by our experts. By joining this event you can claim 1 hour of structured CPD under the PMI CPD scheme.