#2026/698Pensions Lifetime Allowance Charge Abolition Regulations 2026
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The regulations make technical changes to the UK tax rules that replaced the pension lifetime allowance charge. They clarify how pension lump sum allowances and lump sum death benefit allowances are applied, especially where more than one pension benefit event happens on the same day. The changes mainly affect pension scheme administrators, advisers, and individuals taking pension lump sums or receiving death benefits. Administrators will need to apply the updated ordering and allowance rules for relevant payments and transfers from the stated effective dates.
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Key Changes
- Clarifies how lump sum and death benefit allowances are applied after the abolition of the lifetime allowance charge
- Allows individuals to decide the order of multiple relevant pension benefit events occurring on the same day
- Sets specific effective dates for rules covering certain payments, lump sums, and transfers
Obligations
What this law requires
Where more than one relevant benefit crystallisation event occurs for an individual on the same day, the individual must decide the order in which those events are treated as occurring for purposes of calculating availability of the lump sum allowance under ITEPA 2003 section 637Q.
Where an individual makes an ordering decision for purposes of the lump sum and death benefit allowance under ITEPA 2003 section 637S, the decision must be consistent with any ordering decision made for the same relevant benefit crystallisation events under section 637Q.
Pension scheme administrators must apply the amended rules introduced by regulations 2(6) and 14(4) to 14(7) only to payments made on or after 29 June 2026.
Pension scheme administrators must apply the amendment made by regulation 4(2) only to lump sums paid on or after 29 June 2026.
Pension scheme administrators must apply the amendment made by regulation 12 only to transfers made on or after 29 June 2026.