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UK pensions lifetime allowance abolished from 6 April 2024: new lump sum and death benefits limits drive adviser demand amid possible post-election policy reversal

Published on: 22 January 2024

Published by a Law360 reporter
Legal News
Article summary

A NextWealth study, commissioned by Aegon UK, reports that 49% of firms have experienced rising demand for guidance on pension tax allowances. As part of the research, 200 financial advisers were surveyed in November 2023. The so‑called lifetime allowance is due to be scrapped on 6 April 2024, lifting the ceiling on the level of tax‑free pension saving that can be put into retirement pots. Nonetheless, two fresh limits will take effect instead from April. On 18 January 2024, Steven Cameron, pensions director at Aegon UK, warned that the details of the lifetime allowance’s abolition, announced only very recently, would heap pressure on advisers as the tax year end nears. Until April 2024, the lifetime allowance stands at a little over £1m. HM Revenue and Customs says this will be superseded by two new limits, which apply to lump sums and death benefits...

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