Despite industry pleas for a delay, the UK Autumn Statement confirmed the removal of references to the LTA will proceed with effect from 6 April 2024.
The focus of the Chancellor's Autumn Statement was on economic growth, including a number of proposals related to the July 2023 Mansion House proposals; we cover those in a separate web page. As a further growth measure, the Chancellor announced a 2% cut in employee national insurance from 12% to 10% with effect from 6 January 2024.
In addition to those growth measures, the government:
- Confirmed that the concept of the LTA would be removed from the pensions tax framework from 6 April 2024. WTW will continue to engage with the government and make the case, strongly, for a delay.
- Published a policy paper covering the elements missing from the July 2023 consultation (reporting and disclosure, transition and international) and indicating where policy had changed since July.
- Confirmed that the triple lock would be based on the 8.5% annual growth in earnings (the average over the three months to July 2023).
Our Pensions Briefing web page: Chancellor's Autumn Statement 22 November 2023 provides further analysis of these and other measures.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
