Lifetime allowance

Produced by Tolley in association with

Employment Tax

Guidance

This guidance note looks at the lifetime allowance which applied until 5 April 2024. The lifetime allowance charge was removed from 6 April 2023 and the lifetime allowance itself was abolished from 6 April 2024. For details of the replacement system for taxation of pension lump sums, see the Pension income and lump sum allowances from 6 April 2024 guidance note.

Introduction

A lifetime limit on the total amount of pension value that can benefit from tax relief was introduced with effect from 6 April 2006, with a lifetime allowance charge being levied on any excess over this lifetime allowance.

This lifetime allowance charge was abolished with effect from 6 April 2023. When any pension value in excess of the lifetime allowance is taken, it is

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Associated companies ― from 1 April 2023

Associated companies ― from 1 April 2023Implications of associated companiesFrom 1 April 2023, the rate of corporation tax that a company is subject to depends on the level of its augmented profits. The rate of tax is based on a comparison of the company’s augmented profits against the corporation

22 Mar 2021 10:21 | Produced by Tolley Read more

Trusts and Inheritance Tax

BPR ― trading and investment businesses

BPR ― trading and investment businessesIntroductionThe basic qualification rules for business property relief (BPR) are illustrated in the Flowchart ― trading or investment business for BPR purposes.For an overview of BPR, see the BPR overview guidance note.Relevant business propertyThe main

14 Jul 2020 15:36 | Produced by Tolley Read more

Owner-Managed Businesses

Interest on late paid tax

Interest on late paid taxIntroductionInterest on late paid tax is a compulsory charge set out in legislation to reflect the interest which would have accrued to the Exchequer had the correct amount of tax been paid at the right time.Harmonised legislation was introduced in 2009 to:•set statutory

14 Jul 2020 12:00 | Produced by Tolley in association with Philip Rutherford Read more

UU��ֱ��