The Chancellor announced the following measures on pensions in his 2023 Autumn Statement.
Abolition of the Lifetime Allowance
From 6 April 2024:
- As announced at Spring Budget 2023, Autumn Finance Bill 2023 will remove the pensions Lifetime Allowance.
- The measure will clarify the taxation of lump sums and lump sum death benefits and the application of protections.
- It will also clarify the tax treatment for overseas pensions, transitional arrangements and reporting requirements.
Taxation of pension remedies for Members of Parliament, Members of Senedd and Members of the Legislative Assembly
From Royal Assent of Autumn Finance Bill 2023:
- Legislation and supporting regulations will ensure the pensions tax framework applies as intended to redress payments from the Parliamentary Contributory Pension Fund, the Senedd Pension Scheme and the Assembly Members’ Pension.
Relief at Source (RAS)
- The digitalisation of RAS will not be operative until April 2027 at the earliest.
Surplus extraction arrangements for defined benefit pension schemes
From 6 April 2024:
- Secondary legislation will be introduced to reduce the free-standing tax charge which applies to authorised surplus payments to sponsoring employers of a registered pension scheme from 35% to 25%.
Tackling the problem of small pot pensions
- The government is launching a call for evidence on a lifetime provider model that would allow individuals to have contributions paid into their existing pension scheme when they change employers, providing greater control over their pension.
Autumn Statement 2023: At a glance
The Chancellor, Jeremy Hunt, presented his Autumn Statement 2023 speech on Wednesday 22 November. This is our 'At a glance' summary of the key tax announcements and measures.
Policy paper: Abolition of the Lifetime Allowance from 6 April 2024