Following the budget March 15, 2023, The Chancellor has made the following changes to the pension charge:
· Increase the annual allowance exemption from £40,000 to £60,000;
· Increase the minimum annual allowance exemption limit from £4,000 to £10,000;
· Increase the income level for the tapered annual allowance to apply from £240,000 to £260,000;
· Ensure that nobody will face a lifetime allowance charge from April 2023;
· Limit the maximum an individual can claim as lumpsum to 25% of the current Lifetime allowance (£268,275), except where protections apply;
· Change the taxation of the LTA excess lump sum, serious ill-health lump sum (SIHLS), defined benefits lump sum death benefit (DBLSDB), and uncrystallised funds lump sum death benefit (UFLSDB), where they are currently subject to a 55% tax charge above the Lifetime allowance, to taxation at an individual’s marginal rate;
If you need more information about the pension changes, please contact us [email protected]
