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Abolition of the Lifetime Allowance
The lifetime allowance is the maximum amount of tax relievable pension savings an individual can benefit from over the course of their lifetime. Formerly pension savings in excess of the lifetime allowance were subject to a lifetime allowance tax charge, but since 06 April 2023 this tax charge has been removed and any pension savings worth more than the lifetime allowance will be taxed at an individual’s marginal rate.
The government may make additional changes to the taxation of pension savings when new legislation is introduced, effective from 6 April 2024. If you are considering taking your benefits after 6 April 2024 please note these changes and consider taking financial advice. These changes are similarly worth knowing about, and considering taking financial advice on, if you are considering taking your benefits before then.
Useful links
- Pension Scams:
- ScamSmart – Avoid investment and pension scams | FCA
- State Pension:
- Find out more about the State Pension | GOV.UK
- Pension Tracing Service:
- Use this service to find contact details to search for a lost pension – GOV.UK
- Pensions Ombudsman:
- Homepage | The Pensions Ombudsman (pensions-ombudsman.org.uk)
- The Pensions Regulator:
- Workplace pensions law – auto enrolment | The Pensions Regulator
- Pensions UK Retirement Living Standards:
- https://www.retirementlivingstandards.org.uk