On September 5, 2023, HMRC published updates to the Pensions Tax Manual (PTM), reflecting legislative changes that took effect from the start of the 2023/24 tax year under the Finance (No 2) Act 2023. The main changes are:
- A new page has been published in the section Protection from the lifetime allowance (LTA) charge regarding the changes to the LTA in the 2023/24 tax year (PTM091100). The new page refers to the removal of the LTA charge, the adoption of marginal-rate taxation of certain lump sums and death benefits and the impact of the changes on members who claimed enhanced protection or any form of fixed protection from the LTA charge, as well as those claiming protection on or after March 15, 2023, which was Budget Day when the changes were announced.
- Introductory notes have been added to 29 existing pages concerning the LTA and certain authorised lump sums (including the application of the legislation to non-UK schemes). These summarise the effect of the 2023/24 changes, reiterate that benefits crystallising still need to be measured against the LTA and cross-refer to new page PTM091100 (PTM081000, PTM063210, PTM113400 and others).
- Introductory notes have been added to 19 existing pages concerning transitional protection. These summarise the effect of the 2023/24 changes, both for members who hold enhanced protection or one of the forms of fixed protection and for those who make valid late applications on or after March 15, 2023, and cross-refer to new page PTM091100 (PTM092000 and others).
- Nine existing pages regarding the annual allowance (AA) have been updated to refer to the increase in the standard AA to £60,000 from the start of the 2023/24 tax year and the related changes to the money purchase and tapered AAs (PTM057100 and others).
