The abolition of the lifetime allowance (LTA) for pension savings is on schedule and will be complete by 6 April next year, official documents confirm.
The removal of the LTA - the maximum amount people can contribute to a pension pot without triggering tax charges - was announced in the Spring Budget.
Documents released alongside today's (22 November) Autumn Statement speech said the government "will legislate in the Autumn Finance Bill 2023 to remove the lifetime allowance".
The document added: "The measure will clarify the taxation of lump sums and lump sum death benefits, and the application of protections, as well as the tax treatment for overseas pensions, transitional arrangements, and reporting requirements. This will take effect from 6 April 2024."
Labour previously committed to restoring the LTA should it win the next general election.
Consequently, the situation has made long-term financial planning more difficult for both advisers and clients.
Curtis Banks pensions technical manager Caitlin Southall said: "In an ideal world, the abolishment of the LTA will come into place next April as planned and the rules and guidance enabling a smooth transition will be straightforward and understandable.
"The government is under considerable pressure to deliver complicated legislation within a tight timeframe. Moving the abolishment back to 2025 might have given a better opportunity to ensure that the legislation is optimal for pension savers."
Abrdn welcomed the "further clarity on the LTA abolition going ahead as planned for April next year".
"As always, scrutiny of the detail will tell whether this is enough to provide the structure and certainty to make this a success. With such a significant measure, there can be no stone left unturned," it added.
