As part of the government’s budget last spring, the Lifetime Allowance charge was removed from 6 April 2023. Subsequently, the Lifetime Allowance for the 2024/2025 tax year will be abolished from 6 April 2024 and is being replaced by three new allowances. 

The three new allowances being introduced are broadly intended to replicate the tax-free allowances which were available to members previously. The standard Lump Sum Allowance has been set at £268,275, mirroring the maximum tax-free lump sum a member could receive previously. The Lump Sum and Death Benefit Allowance and the Overseas Transfer Allowance operate separately from one another but are both set at £1,073,100.

We’re currently working through what this means for Scheme members and the changes we need to make to our systems. For more information regarding the changes please visit Pension scheme trustees - GOV.UK (www.gov.uk) (This link opens in a new window).

As soon as more information is known, we’ll update you via our website and social media channels.