Fresh LTA rule update gives advisers clarity but questions remain

February HMRC newsletter gave LTA update ahead of 6 April abolition

Jenna Brown
clock • 1 min read

HM Revenue & Customs (HMRC) has issued a further update to the post-lifetime allowance (LTA) abolition rulebook ahead of its removal on 6 April.

With less than two months to go before the changes, HMRC's February newsletter gave "welcome clarification" to the rules for those responsible for advising clients, according to Royal London pensions expert Clare Moffat. She said: "This is especially true in relation to transitional tax-free amount certificates, which we receive the most queries about, along with questions on the implications of the changes on those who have already taken benefits but who will take more after 6 April." However, Moffat said there were still unanswered questions.  "HMRC state that more information wi...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

IHT on pensions to cause 'operational complexity and risk' for providers

IHT on pensions to cause 'operational complexity and risk' for providers

Expected to lead to delays in payments to beneficiaries

Isabel Baxter
clock 31 January 2025 • 3 min read
DB transfer advice slows since FCA's 2020 crackdown

DB transfer advice slows since FCA's 2020 crackdown

Many firms have stopped offering DB advice, regulator finds

Isabel Baxter
clock 30 January 2025 • 2 min read
SSAS and divorce: Everything advisers need to know

SSAS and divorce: Everything advisers need to know

'It's estimated that only 4% of divorces include a pension'

Caitlin Southall
clock 30 January 2025 • 5 min read