7 23 March 2022 l SPRING STATEMENT Pensions – the lifetime and annual allowances The lifetime allowance, which sets the effective maximum taxefficient value of pension benefits, will remain at £1,073,100 for 2022/23 and is not due to rise until 2026/27. There is also no increase to the annual allowance, which remains at a maximum of £40,000, subject to the taper and money purchase annual allowance rules. Company cars Company car tax for vehicles registered since 6 April 2020 will rise in 2022/23 for all but the highest emission vehicles. • The taxable cash equivalent percentages will all increase by one percentage point, subject to the current ceiling of 37% of list price. • Older cars will be unaffected, meaning that in 2022/23 the same scale will apply to cars with CO2 emissions measured under both the NEDC and the newer WLTP yardsticks. The diesel surcharge will remain at 4% for diesel cars that do not meet the RDE2 emission standard (which became mandatory from January 2021). The maximum charge for diesels also stays at 37%. The scale charge for purely electric vehicles (EVs) will double to 2%, but EVs remain an attractive option for anyone able to obtain such a vehicle under salary sacrifice arrangements. Inheritance tax (IHT) The residence nil rate band and main nil rate band will remain at £175,000 and £325,000. Both are set to stay frozen until 2026/27.
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