To reduce the tax complexity faced by individuals whose registered pension savings or life insurance benefits reached the Lifetime Allowance (LTA), the United Kingdom has eliminated the LTA and introduced two other allowances with more favorable tax treatment for those who exceed them. The Finance (No.2) Act 2023 removed the Lifetime Allowance charge with effect from 6 April 2023, and the subsequent Finance Act 2024 removed the Lifetime Allowance in its entirety but introduced the Lump Sum an...
