A dozen reasons to boost pension pots before April
Techzone looks at the pension funding opportunities to be considered before the tax year end.
Removal of the lifetime allowance Adviser support
Removing the pension lifetime allowance (LTA) is no easy feat. The existing pension rules are littered with references to it, affecting all aspects of pension saving.
While this removes the cap on tax-efficient pension funding, in its place will be 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
New pension rules from 6 April 2024 have now received Royal Assent and our team of experts have been analysing the detail and the impact these changes will 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).
In the meantime, the most topical content and frequently asked questions will be shared here to help you keep up to date.
As more information becomes available from HMRC on the practical application of these changes, we will continue to share our insight and take some deeper dives into how this will shape advice from 6 April.