Navigating Lifetime Allowance (LTA) Changes for Advisers
Removing the pension lifetime allowance (LTA) was no easy feat. The previous pension rules were littered with references to it, affecting all aspects of pension saving.
While this removed the cap on tax-efficient pension funding, it was replaced with two new allowances:
The Lump Sum Allowance (LSA) - limiting how much tax-free cash can be taken- The Lump Sum and Death Benefit Allowance (LSDBA) – restricting the combined total of all tax-free lump sums paid during the member’s lifetime and on death before age 75.
How we can help
These new pension rules came in from 6 April 2024 and our team of experts have been analysing the detail and the impact these changes have on retirement advice.
Techzone - technical support for LTA changes
We have prepared a number of articles on our Techzone site focusing on how the new rules might affect your clients across different areas such as funding, taking benefits and on death.
Decision tree – who should consider applying for a TTFAC?
Techzone offers a 'decision tree approach' to looking at who should consider applying for a transitional tax-free amount certificate (TTFAC).
