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Replacement of the lifetime allowance

The legislation that replaced the lifetime allowance framework became effective on 6 April 2024. You’ll find more information on the new rules and transitional arrangements below.

Update: Replacement of the lifetime allowance

The pension lifetime allowance (LTA) has now been abolished and replaced with a new framework. In this postcard, Paul Squirrell summarises the three new allowances that were introduced on 6 April 2024 and explains the transitional arrangements that have been put in place. Following the issue of PSN155, it also confirms the latest guidance on how to apply for a transitional tax-free amount certificate.

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The LTA replacement regime explained

The lifetime allowance (LTA) replacement regime has seen the introduction of three new allowances. The changes are good news for clients saving for their retirement but there is lots of detail to consider as we enter into the new tax year. Paul Squirrell examines the new rules and what they mean for clients.

5-min read

Transitional tax-free amount certificates

Where clients accessed pension savings prior to 6 April 2024 and so used part or all of their lifetime allowance, the new lump sum allowance and lump sum and death benefit allowance are reduced by a “default” calculation. However, individuals have the option to apply for a “transitional tax-free amount certificate” where this would provide them with additional allowances.

Article: 5-min read

Guide: Completing the TTFAC information request Form: TTFAC information request
Calculating amount

Continuing Professional Development

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Retirement and pensions training

46 short retirement videos, totalling over five hours of learning.