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Replacing the lifetime allowance

As of 6 April 2024, the lifetime allowance (LTA) was abolished and has been replaced by three different allowances; the lump sum allowance, the lump sum and death benefit allowance and the overseas transfer allowance.

You can take action to manage your pension

Our pension specialists at Evelyn Partners are experienced at helping people structure their finances in the most tax-efficient way. They can help you manage the pension lifetime allowance.

Make an appointment today to discuss:

  • The amount you can save in your pension before you’re hit by this charge
  • The different ways to protect your pension lifetime allowance
  • The tax you’ll pay if you exceed the new allowances
  • How Evelyn Partners can help you manage the lifetime allowance

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What is the lifetime allowance being replaced with?

The lifetime allowance was scrapped at the beginning of the 2024/25 tax year and is being replaced with three different allowances:

  • The lump sum allowance (LSA) - £268,275
  • The lump sum and death benefit allowance (LSDBA) - £1,073,100
  • The overseas transfer allowance - £1,073,100

Both the lump sum and the lump sum and death benefit allowances limit the amount of tax-free benefits that can be paid. The lump sum death benefit allowance applies at a relevant benefit crystallisation event, when someone dies or on the payment of a serious ill-health lump sum.

When benefits are paid, a verification check is made against these allowances. It's worth noting that these allowances may be different should an individual have lifetime allowance protection.

Why choose Evelyn Partners?

  • We’re experts in pension planning with a nationwide team of qualified and experienced advisers
  • Clients have trusted us to help them with their financial plans for 186 years
  • We look after more than £61.8bn (as at March 2024) on behalf of our clients

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0203 131 6167