Lifetime allowance: The £1.25m question

Helen Morrissey looks at the impact of the LTA falling to £1.25m at the end of this tax year

Helen Morrissey
clock

In April 2014 the lifetime allowance will drop to £1.25m, and employees likely to breach this amount will need to start thinking about how best to protect their pension pot.

Pension pots above this level could find themselves subject to a 55% tax charge on the residual amount. While those with large pensions clearly need to make provisions, figures from HMRC show we...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

More on Law and Regulation

Government must collaborate with industry to ensure pension investment in UK

Government must collaborate with industry to ensure pension investment in UK

Lou Davey says partnership essential to avoid unintended consequences

Lou Davey
clock 23 December 2024 • 4 min read
SPP: The potential impact of bringing pensions into the inheritance tax regime

SPP: The potential impact of bringing pensions into the inheritance tax regime

Richard Wyatt says putting pensions into the IHT regime is like fitting a square peg in a round hole

Richard Wyatt
clock 19 December 2024 • 3 min read
ACA, APL and SPP issue update on Virgin Media case

ACA, APL and SPP issue update on Virgin Media case

Tripartite working party urges DWP to regulate to allow retrospective amendments

Jonathan Stapleton
clock 17 December 2024 • 2 min read
Trustpilot