IC wrote:The LTA is the amount of money an individual can keep in their pension funds without incurring a penal tax charge for having excessive pension savings. Due to the government abolishing the LTA charge this year, no charges are imposed if an individual accesses their pension savings after 6 April 2023, although tax reports on the LTA still have to be made.
I have a mate who retired this year (university academic), was about to retire at the end of March 2023 (when the LTA changes were announced), and his employer delayed his retirement until after April 2023. I think he would have been affected by the LTA (but I don't know this for certain, and I don't think he does), but having delayed his retirement until after April, he may have avoided having to deal with (and possibly pay) the LTA. However, as he retired after April, when the LTA was abolished, does he still have to report his LTA (as in "tax reports on the LTA still have to be made"), e.g. declare it on a tax return (or somewhere) but pay no tax on it? If so, is there a source somewhere that I can refer him to, so he is aware of this and can do something about it before it dosen't get done and HRMC come knocking.