Autumn Statement 2023: Pensions

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. 

See Pensions: Tax rules and planning

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.

See Pensions: Tax rules and planning

Relief at Source (RAS)

• The digitalisation of RAS will not be operative until April 2027 at the earliest.

See Pensions: Tax rules and planning

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%.

See Pensions: Unauthorised payment charges

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.

See Auto-enrolment: Workplace pensions

Useful links

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. 

External links

Policy paper: Abolition of the Lifetime Allowance from 6 April 2024

Pensions Investment Reform

Policy paper: Taxation of Members of Parliament, Members of the Senedd and Members of the Legislative Assembly of Northern Ireland pension reform remedies