'Devil in the detail' — what lawyers say about 'complex' LTA abolition

‘Some rowing back’ may happen as framework is taken apart

Jonathan Stapleton
clock • 4 min read

The abolition of the lifetime allowance (LTA) could ‘remove a burden’ for HM Revenue & Customs (HMRC), will have ‘knock-on’ consequences and may see some “rowing back” as the structure is dismantled, pension lawyers say.

Arc Pensions Law managing partner Rosalind Connor explained that while the chancellor announced the abolition of the LTA in his budget, in practice he was getting rid of any LTA charges - the tax from exceeding the LTA - from 6 April, but taking longer to work out what to do with the "complex framework" of the LTA.  She said this could lead to "some rowing back in the future as the structure is dismantled". Labour this morning (16 March) said it would reverse the move and keep the LTA in place. Connor also questioned the reason given by government for abolishing the LTA - that it woul...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

How retirement planning has transformed over the past 50 years

How retirement planning has transformed over the past 50 years

PPI report looks at the move from predictable pensions to personal responsibility

Jonathan Stapleton
clock 21 November 2024 • 3 min read
Act now: Planning for retirement is a concern for today

Act now: Planning for retirement is a concern for today

'Don't wait until tomorrow to think about retirement'

Andrew Tully
clock 20 November 2024 • 4 min read
Government publishes Pensions Investment Review interim report and launches DC and LGPS consultations

Government publishes Pensions Investment Review interim report and launches DC and LGPS consultations

Report published as Reeves delivered inaugural Mansion House speech

Jonathan Stapleton
clock 15 November 2024 • 4 min read