Income tax on pension scheme lump sums

This third and final article of my series of articles on the tax treatment of pension lump sums considers some of the finer detail of FA 2024 Sch 9. If you have not yet read my first two articles then I recommend that you do so before reading this one.

The Finance Bill 2023-24 explanatory notes can be invaluable when one needs to interpret the FA 2024 which describes the fundamentals of the new regime. There have now been about 12 HMRC pension scheme newsletters (geared towards scheme administrators) issued since this reform was first announced.

Lifetime allowance abolition

Part 1 of FA 2009 Sch 9 relates to the ‘abolition of lifetime allowance (LTA) charge’. While the LTA charge ceased to exist from 6 April 2023 and therefore the LTA still applied for all of the 2023-24 tax year there is a technical...