PTM164100 - Information and administration: overview of the information requirements in respect of the lifetime allowance
As of 6 April 2024 there is no longer lifetime allowance. If you are looking for information about protections, enhancement factors and the lifetime allowance charge please see these pages on The National Archives. If you are looking for information about the principles of lifetime allowance and benefit crystallisation events please see these pages of The National Archives.
Glossary PTM000001
As of the 6 April 2023 the lifetime allowance charge was abolished and there is no requirement to report the lifetime allowance charge from this date.
As of the 6 April 2024 lifetime allowance was abolished and there is no requirement to report lifetime allowances from this date.
For anything prior to these dates the below guidance should still be considered.
Regulations 11, 12, 14, 16, 17 & 17A The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567
Liability to the lifetime allowance charge may arise when a benefit crystallisation event (BCE) occurs. The lifetime allowance system is supported by an information exchange and reporting regime. There are different systems for reporting and paying the lifetime allowance charge depending on whether the BCE occurred during the member’s lifetime or as a result of a BCE after the death of the member.
Guidance at PTM088500 explains the lifetime allowance process when a BCE occurs after the member’s death. Guidance on the information requirements following the member’s death starts at PTM165000.
PTM088400 outlines the lifetime allowance process where a BCE occurs during the member’s lifetime. The information exchange requirements can be summarised as
Before the BCE
Scheme member to tell the scheme administrator if they have any form of lifetime allowance protection - see PTM164200.
After the BCE
Scheme administrator to tell the member how much lifetime allowance has been used up by the BCE - see PTM164400.
Scheme administrator to tell the member if there is a liability to the lifetime allowance charge and if so, whether the scheme administrator has paid or intends to pay part or all of the tax due - see PTM164300.
If an insurance company is paying a scheme pension or lifetime annuity using funds that derived from a registered pension scheme, they must tell the member how much lifetime allowance has been used up in respect of those benefits - see PTM164500.
Information for individual protection 2016 applications
The scheme administrator must give members information about the value of their benefits under the scheme to enable them to make an application for individual protection – see PTM164120.