Quick Guide to Budget Changes for Members of the LGPS

This guide looks at the main pension related changes contained within the budget of 15 March 2023, including;

• removal of the Lifetime Allowance (LTA) charge
• impact on the maximum tax-free lump sum amount
• changes to how LTA excess lump sums are taxed
• increase to the annual allowance limit from 2023/24
• change to the threshold income for tapered annual allowance

The guide also includes examples of the lifetime and annual allowances, and illustrates the impact of these changes on scheme members.