Pension Contributions Are Back On The Table

In a bid to prevent NHS consultants and other in demand professionals from scaling back their hours or retiring early, the Chancellor made some changes to pensions contributions in the Spring Budget 2023.

These changes have made the payment of pension contributions a more attractive proposition for people whose funds were already in excess of the current standing Lifetime Allowance (LTA) or whose funds were likely to exceed it at the point when they are measured against it. The tax-free cash entitlement for these people will still be restricted to 25% of the LTA, however, their pension funds in excess of this amount will no longer be subject to an LTA tax charge, which is a significant benefit.