Spring budget announcement

At today’s Spring budget, the government has announced the following changes:

• The Lifetime Allowance (LTA) charge will be removed from 6 April 2023, before being completely abolished in April 2024.
• The standard Annual Allowance (AA) will increase from £40,000 to £60,000 with effect from 6 April 2023 (also known as the 2023/24 Pension Input Period).
• The Adjusted income level will increase from £240,000 to £260,000 – this is what’s used for establishing if the Tapered AA applies and what the level of the Tapered AA is.
• Pension Commencement lump sums will be restricted to £268,275 for those without protections.

Further information will be released as we know more about changes to the Teachers’ Pension Scheme.