This guidance note looks at the lifetime allowance which applied until 5 April 2024. The lifetime allowance charge was removed from 6 April 2023 and the lifetime allowance itself was abolished from 6 April 2024. For details of the replacement system for taxation of pension lump sums, see the Pension income and lump sum allowances from 6 April 2024 guidance note.
A lifetime limit on the total amount of pension value that can benefit from tax relief was introduced with effect from 6 April 2006, with a lifetime allowance charge being levied on any excess over this lifetime allowance.
This lifetime allowance charge was abolished with effect from 6 April 2023. When any pension value in excess of the lifetime allowance is taken, it is
Associated companies ― from 1 April 2023Implications of associated companiesFrom 1 April 2023, the rate of corporation tax that a company is subject to depends on the level of its augmented profits. The rate of tax is based on a comparison of the company’s augmented profits against the corporation
Special rate pool and long life assetsSpecial rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool
Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed