Spring Budget 2023

As announced at Spring Budget 2023, the government will legislate in Spring Finance Bill 2023 to increase the Annual Allowance from £40,000 to £60,000.

The Money Purchase Annual Allowance and the minimum Tapered Annual Allowance (TAA) will both be increased from £4,000 to £10,000, while the adjusted income threshold for the TAA will also be increased from £240,000 to £260,000. The government will also legislate to remove the Lifetime Allowance (LTA) charge for 2023 to 2024 in Spring Finance Bill 2023 and will deliver the technical changes necessary to abolish the LTA from April 2024 in a future Finance Bill. The maximum Pension Commencement Lump Sum for those without relevant protections will be retained at its current level of £268,275 and will be frozen thereafter. Lump sums currently taxed for some individuals at 55% above the LTA will be taxed at an individual’s marginal rate of income tax. These changes will take effect from 6 April 2023.

Please click on the link below for an overview of UK tax policy changes:

Spring Budget 2023 — Overview of Tax Legislation and Rates (OOTLAR)