April 2024’s Newsletter (155) was published on 04 April 2024, just ahead of the start of the new tax year.
The April Newsletter focus is on the abolition of the Lifetime Allowance (LTA).
The LTA was, very simply, the maximum amount of the lifetime ‘pension pot’, above which there may be tax implications. The value of £1,073,100 could be increased if the individual had a form of HMRC ‘protection’, a mechanism in place to protect a higher value as it may have applied in previous tax years. There are two significant reforms:
1. The LTA tax charge was abolished in April 2023 and
2. The LTA itself is abolished from April 2024
The April Newsletter provides information that is designed to communicate the implications.
For Bookkeepers
It is important to note that bookkeepers and payroll professionals are involved in the collection of pension contributions, not the administration of pension schemes. HMRC’s Newsletters are for those involved with pension scheme administration.
