ICAEW.com works better with JavaScript enabled.

More guidance released on lifetime allowance abolition

Author: ICAEW Insights

Published: 11 Mar 2024

HMRC has responded to feedback on the abolition of the pension lifetime allowance rules. Detailed guidance has been published and amendments will be made to the legislation, effective from 6 April 2024.

HMRC’s latest Lifetime allowance guidance newsletter contains further guidance on the implications of the pensions lifetime allowance abolition. The guidance includes 38 frequently asked questions, some of which have been informed by feedback from working groups. 

The guidance covers a number of areas, including protections and enhancement factors; reporting requirements; transitional tax-free amount certificates; and the standard transitional calculation.

The legislation to complete the abolition of the lifetime allowance is included in Finance Act 2024 (FA 2024). However, HMRC has confirmed that it will make changes to FA 2024 and other legislation through regulations, effective from 6 April 2024. 

This includes changes to:

  • lump sums and lump sum death benefits;
  • protections and enhancement factors;
  • pension commencement excess lump sum (PCELS);
  • enhanced protection;
  • primary protection; and
  • the overseas transfer allowance.  
Latest on personal tax
The Tax Faculty

ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

Further resources

Latest news
Making tax digital image

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter

Practical guidance

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.

Open AddCPD icon

Add Verified CPD Activity

Introducing AddCPD, a new way to record your CPD activities!

Log in to start using the AddCPD tool. Available only to ICAEW members.

Add this page to your CPD activity

Step 1 of 3
Download recorded
Download not recorded

Please download the related document if you wish to add this activity to your record

What time are you claiming for this activity?
Mandatory fields

Add this page to your CPD activity

Step 2 of 3
Mandatory field

Add activity to my record

Step 3 of 3
Mandatory field

Activity added

An error has occurred
Please try again

If the problem persists please contact our helpline on +44 (0)1908 248 250