Pension Fund Lifetime Allowance changes
This article and accompanying factsheet provide information so that individuals can understand how changes to the Pension Fund Lifetime Allowance may potentially affect them.
As announced in the Chancellor's 2015 Budget Statement, as of 6 April 2016 the Pension Fund Lifetime Allowance (LTA) will reduce from £1.25 million to £1.0 million.
This means that those individuals who, upon drawing retirement benefits, are deemed to have a pension fund valued in excess of £1.0 million will, potentially, find themselves subject to a Lifetime Allowance Tax Charge (LTAC) on those excess benefits.
The following factsheet provides further information regarding additional tax charges (with examples) and the types of protection which will be available to help individuals to protect themselves, to some degree, against this reduction.