Abolition of Lifetime Allowance and increases to Pension Tax Limits
This measure ensures that no-one will face a Lifetime Allowance charge from April 2023. It increases the Annual Allowance, Money Purchase Annual Allowance, Tapered Annual Allowance, and the adjusted income for the Tapered Annual Allowance.
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This measure applies to all members of registered pension schemes. From 6 April 2023, it removes the Lifetime Allowance (LTA) charge and limits the pension commencement lump sum (PCLS) to its current maximum of 25% of the current LTA, unless individuals hold a valid LTA or PCLS protection. It also increases the Annual Allowance from £40,000 to £60,000, the Money Purchase Annual Allowance and Tapered Annual Allowance from £4,000 to £10,000, and the adjusted income for Tapered Annual Allowance from £240,000 to £260,000.
Updates to this page
Published 15 March 2023Last updated 17 March 2023 + show all updates
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The information in the 'Further advice' section has been updated.
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First published.