Lifetime Allowance replaced by new Lump Sum Death Benefit Allowance
As announced last Spring, for lump-sum death benefits, from 6 April 2024 the Lifetime Allowance (LTA) will be replaced by a new lump sum and death benefit allowance (LSDBA).
The initial value of the LSDBA will be set at £1,073,100 (equivalent to the current LTA). Any benefits over that, are subject to an income tax charge at the marginal rate of income tax, rather than the previous 55% tax charge that applied for breaching the LTA.
Our Terms & Conditions will include the new definition of the LSDBA. But, aside from that minor amendment, please rest assured that your existing Group Life and Excepted Group Life arrangements insured with Generali UK will continue providing the same coverage and benefits and will not change unless you specifically request it.
If you need any further assistance in this respect, we encourage you to seek professional advice from your EB Consultant or a Tax specialist as appropriate.
If you have any further question, please do not hesitate to contact eb.enquiries@generali.co.uk