A. From tax year 2024/25, the draft legislation means that the pension commencement lump sum will be the lowest of:
25% of the remaining fund.
The remainder of the individual’s pension commencement lump sum limit of £268,275 (known as the ‘lump sum allowance’).
The remainder of the individual’s £1,073,100 limit (known as the ‘lump sum and death benefit allowance’)
unless there is some existing protection which will allow for a higher amount.
The detail on how this is going to be tracked is still not available.