HMRC corrects LTA legislation to relieve stuck pensions

Abolishing the LTA was always going to be a complex legislative process

clock • 3 min read

Rachel Vahey shares her technical insight on legislative changes made to correct lifetime allowance (LTA) abolition mistakes...

The new pension tax rules are now over six months old. But still, they are not yet completely correct. Only two days before the start of the tax year, HM Revenue & Customs (HMRC) published a newsletter cautioning that parts of the legislation were wrong, and warning that some pension scheme members may need to wait until changes were made before taking or transferring certain benefits. The result is that some pension schemes have been unsure whether paying out or transferring would land pension savers with a later unwanted tax bill, leaving some people effectively stuck in the same pl...

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

Salary sacrifice protections overturned by House of Commons

Salary sacrifice protections overturned by House of Commons

Commons overturns Lords amendment to increase cap to £5,000 from initial £2,000 proposal

Holly Roach
clock 24 March 2026 • 1 min read
 Rachel Vahey: Advisers and clients still need clarity on NMPA increase

Rachel Vahey: Advisers and clients still need clarity on NMPA increase

'HMRC has had years to clear this up but has sat on its hands'

Rachel Vahey
clock 11 March 2026 • 4 min read
Pension freedoms exposed a longevity problem we still refuse to confront

Pension freedoms exposed a longevity problem we still refuse to confront

'The gap between product complexity and consumer understanding is not narrowing'

Julia Fintz
clock 11 March 2026 • 4 min read