BUDGET l 15 March 2023 6 Registered pension schemes 2023/24 2022/23 Lifetime allowance – charge removed after 5 April 2023 £1,073,100 £1,073,100 Annual allowance Tapered down if threshold income exceeds £200,000 by £1 for every £2 of adjusted income over £60,000 £260,000 £40,000 £240,000 Money purchase annual allowance Minimum tapered annual allowance £10,000 £4,000 Pension commencement lump sum up to £268,275 £268,275 Individual savings account (ISA) subscription limits The ISA annual subscription limit for 2023/24 will remain at £20,000 and the corresponding limit for junior ISAs (JISAs) and child trust funds (CTFs) will stay at £9,000. CAPITAL TAXES Capital gains tax (CGT) annual exempt amount The CGT annual exempt amount for individuals and personal representatives will be cut to £6,000 for 2023/24. The annual exempt amount for most trusts will likewise fall to £3,000 (minimum £600), as previously announced. For 2024/25 onwards, the corresponding figures will be £3,000 and £1,500 (minimum £300). The allowance will no longer be index linked. CGT – separation and divorce As previously announced, for disposals from 6 April 2023: • Separating spouses or civil partners have up to three years after the year they cease living together in which to make no gain/no loss transfers. • No gain/no loss treatment also applies to assets that separating spouses or civil partners transfer between themselves as part of a formal divorce agreement. • A spouse or civil partner who retains an interest in the former matrimonial home has the option to claim private residence relief (PRR) when the property is sold. > SAVER Don’t waste your CGT annual allowance. The annual exempt amount for personal capital gains will be reduced from £12,300 to £6,000 for 2023/24 and cut down to just £3,000 from 2024/25. You should consider realising gains now and reinvesting the proceeds in ISAs or pensions, which are free of CGT.
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