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Spring Budget LTA Changes


Since the Spring Budget in March when the government announced they will be abolishing the LTA, we have been part of the HMRC working groups to ensure our systems have a smooth transition to the new ‘Lump Sum Allowance’ world. As the draft legislation has been released, it is becoming clear that this is going to be a significant and complex change for the industry and most importantly, our systems need to be ready. Noticeably there are absences in the information that HMRC has released, and we know they are still working through the impacts for transitional requirements, disclosure of information and overseas BCEs; but we do have a good indication on some of the new changes that will come in from 6 April 2024.

This is a top priority for Delta, and we have started our plans to move into the new world absent of LTAs and income Benefit Crystallisation Event (BCE) tests, but with Lump Sum Allowances and Lump Sum Death Benefit Allowances. We are always mindful of potential changes when regulation is still in draft, but our product definition and planning has started with this in mind, and our solutions will be flexible to adapt for any challenges HMRC may give us. Our initial summary of the key changes as they currently stand is above.

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