Please note this page was updated for tax year end prior to the Spring Budget on 15 March 2023 and the publication of the Finance (No. 2) Bill on 23 March 2023.
Based on the bill the Government intends to reduce LTA tax charges to 0% for the 2023/24 tax year, with a change in the taxation of death benefits. Additionally, there will be protection in place for those with LTA protections to maintain their higher entitlement to Pension Commencement Lump Sum.
Therefore, for the 2023/24 tax year there will still be a LTA in force and providers will still require all of the usual information for Benefit Crystallisation events even though the tax charge is intended to be 0%.
As this is currently a bill going through parliament it will not become law until it received Royal Assent, subsequently there may be amendments to this bill as it passes through parliament. We will update these pages once legislation is passed.
Furthermore, the government has stated that they intend to abolish the LTA in a future finance bill/act from the 2024/25 tax year. Once details on this are known we will make future updates to this page.