HMRC warns about taking benefits until it fixes LTA abolition rules

Request came just two days before the LTA abolishment date

Jonathan Stapleton
clock • 1 min read

HM Revenue & Customs has advised some members to delay taking benefits or transferring pensions until it can fix incorrect legislation around the abolition of the lifetime allowance (LTA).

In a newsletter released last week (4 April),  HMRC suggested there were a number of cases where "schemes should advise members to request a delay to the payment/defer their request to transfer". HMRC said these include any case which involves scheme specific tax-free cash protection; a transfer of a case with enhanced protection; enhanced protection and primary protection cases with protected lump sum rights of more than £375,000; the payment of a lump sum death benefit from funds which crystallised prior to 6 April 2024; any transfer from drawdown to a qualifying recognised overseas pe...

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 Tax planning

Business Relief in IHT planning set to become 'even more important'

Business Relief in IHT planning set to become 'even more important'

Advisers expect to see an increase in unquoted BR in IHT planning

Isabel Baxter
clock 09 May 2024 • 1 min read
PA360: AIM investments should be 'more than an IHT planning option'

PA360: AIM investments should be 'more than an IHT planning option'

How AIM is becoming more mainstream in financial planning

Jenna Brown
clock 26 April 2024 • 2 min read
Inheritance tax receipts hit a record of £7.5bn as 2023/24 year ends

Inheritance tax receipts hit a record of £7.5bn as 2023/24 year ends

‘IHT is the tax gift that keeps on giving as record receipts have been banked’

Hope Coumbe
clock 23 April 2024 • 2 min read