Pension Tax Manual

Category: Pensions · Reviewed by Taylor Watts, Broker · New Business · Last reviewed 2026-06-10

The Pension Tax Manual (PTM) is HMRC’s published internal guidance on the application of the registered pension scheme regime under Part 4 of the Finance Act 2004 (as amended by the Finance Act 2024 to replace the lifetime allowance with the lump sum allowance and the lump sum and death benefit allowance). It is the primary source of HMRC’s interpretive views on pension scheme tax, including registration, member benefits, employer contributions, death benefits, transfers, and overseas issues.

Category: Pensions Also known as: PTM Publisher: HMRC Related concepts: Registered group life policy, Defined contribution pension, Lump sum death benefit

Definition

The PTM is structured as a series of chapters (PTM01000 through PTM197000) covering topics from “What is a registered pension scheme” through “Transitional reliefs”. It is published as an HMRC internal manual on gov.uk and is regularly updated. While not law, it is the authoritative source for understanding how HMRC will approach pension tax questions.

Legal / Regulatory basis

The PTM does not have force of law but it is widely cited and relied upon by pension scheme professionals. Where the PTM and the underlying statute differ, the statute prevails, but the PTM is normally followed for HMRC compliance unless a taxpayer is prepared to litigate.

Scope of cover

Selected key references for group risk practice: PTM063300 (registered group life schemes); PTM088100 (lump sum death benefits and the LSDBA from 6 April 2024); PTM072000 (dependants’ benefits); PTM044300 (employer contribution limits and tax relief); PTM150000 (transfers); PTM157000 (overseas issues).

Practical example

A trustee preparing to pay a lump sum death benefit from a registered group life scheme consults PTM088100 to confirm the testing of the lump sum against the LSDBA and PTM063100 to confirm the correct trustee tax-reporting procedure. The trustee then makes payment and files the Accounting for Tax Return.

See also

References

  1. HMRC, Pension Tax Manual — https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual
  2. Finance Act 2004, Part 4 — https://www.legislation.gov.uk/ukpga/2004/12
  3. Finance Act 2024 — https://www.legislation.gov.uk/ukpga/2024/3

This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.

Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.

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