Devilish details: Protection and the abolition of the LTA

'There are a number of subtleties to be aware of'

clock • 8 min read

The abolition of the LTA brought with it a raft of consequences for existing protections and as always, the devil is in the detail. Thomas Coughlan shares his insight on the hot topic...

The lifetime allowance (LTA) is set to be abolished on 6 April 2024 along with the transitional rules that applied during 2023/24. The expiry of last tax year's temporary regime is a simplification of sorts but the new allowances and the impact on these of transitional protection is anything but simple. From 6 April, we must get to grips with three new allowances: the lump sum allowance set at £268,275 and the lump sum and death benefit allowance and overseas transfer allowance, both of which are set at £1,073,100. Holders of LTA protection under the previous rules had a higher-tha...

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

Government confirms no compensation for WASPI women over state pension age changes

Government confirms no compensation for WASPI women over state pension age changes

DWP finds communication delays did not amount to financial loss

Martin Richmond
clock 17 December 2024 • 4 min read
Chancellor's move to pause Pensions Review 'deeply disappointing'

Chancellor's move to pause Pensions Review 'deeply disappointing'

Rachel Reeves has reportedly pressed indefinitely paused the review

Jenna Brown
clock 16 December 2024 • 3 min read
FCA targets pension transfers and SIPPs in major review

FCA targets pension transfers and SIPPs in major review

Regulator launches review of DC pension rules

Isabel Baxter
clock 13 December 2024 • 4 min read