Could the Lifetime Allowance be increasing?
The Lifetime Allowance (LTA) is the overall amount of pension savings that you can have at retirement without incurring a tax charge (excluding any State Pension benefits). With effect from April 2016 the LTA reduced from £1.25 million to £1 million. At the same time it was announced that by April 2018 the LTA would increase annually by inflation.
In this regard, the Treasury has recently confirmed that with effect from 6 April 2018, the Government intends to index the standard LTA annually in line with the Consumer Prices Index (CPI).
We will keep you updated when further details regarding this matter are released.
