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HMRC has provided an update on the abolition of the lifetime allowance, as well as information on relief at source and pensions for retained firefighters. <\/p>\n
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The legislation abolishing the LTA is contained in Finance Bill 2023-24<\/a>. HMRC has received feedback querying how the PCELS will operate. The policy objective of PCELS is to allow those individuals entitled to access 25% or more of their pension benefits as a lump sum, to continue to do so where they have used the whole of their lump sum allowance.\u00a0<\/p>\n In its current version the legislation concerning PCELS may create some unintended consequences. HMRC is considering how to address these issues, whether through legislative change or other means.\u00a0\u00a0<\/p>\n HMRC has identified three other areas where legislative change is believed to be needed:\u00a0<\/p>\n HMRC has published answers to 10 frequently asked questions (FAQs) in the newsletter.\u00a0\u00a0<\/p>\n The pension changes take effect from 6 April 2024 and will entail both technical and operational changes for pension providers. HMRC is aiming to publish updates every fortnight through LTA guidance newsletters or the main monthly pensions schemes newsletter.\u00a0<\/p>\n HMRC is also organising two LTA workshops in February 2024 to discuss transitional arrangements and reporting arrangements. Those who want to attend can email HMRC at policypensions@hmrc.gov.uk.\u00a0\u00a0<\/p>\n<\/div>\n Pension scheme administrators operating relief at source will need to know the residency status of scheme members (ie, Scotland or rest of the UK).\u00a0<\/p>\n HMRC has starting issuing January 2024 notification of residency status reports. An email will be sent out by HMRC alerting the scheme administrator that the report is ready for download. Scheme administrators then have six days (144 hours) to download the file, starting from when the report is made available.\u00a0\u00a0<\/p>\n\n