½Û×ÓÊÓƵ

Lifetime allowance

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Lifetime allowance

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
imgtext

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. The commentary below covers the rules that apply prior to that date.

Until 6 April 2024, the maximum amount that an individual could build up within registered pension schemes was limited in two ways, by a charge (the lifetime allowance charge) based on the value of the fund and attributable pension benefits, if the value exceeded the lifetime allowance, and by a limit on the maximum annual tax-relieved pension input amount permitted. See the Annual allowance guidance note.

The operation of the lifetime allowance and the lifetime allowance charge (that could arise before 6 April 2023) are discussed below. The lifetime allowance was introduced from 6 April 2006. Prior to 6 April 2023, when a member of a

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by

Popular Articles

Taxation of dividend income

Taxation of dividend incomeIntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash

14 Jul 2020 13:48 | Produced by Tolley Read more Read more

Loans written off

Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed

14 Jul 2020 12:11 | Produced by Tolley Read more Read more

Overseas property businesses for companies

Overseas property businesses for companiesOverviewReal estate income is generally taxed where the property is located; the UK tax treaties generally allow the jurisdiction where the land is located to tax income from the land.Therefore, a UK company with overseas property may be subject to tax in

14 Jul 2020 12:22 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more