How does the 2021 budget affect the lifetime allowance?
The lifetime allowance (LTA) will remain unchanged at £1,073,100.
The chancellor has indicated that he plans to keep the lifetime allowance at this level until April 2026.
The lifetime allowance is the overall amount of pension savings that you can have at retirement without incurring a lifetime allowance tax charge. The rules around lifetime and annual allowances are very complicated, so it is important to take independent financial advice before making any pension related decisions.
Farrell Financial Planning provide independent advice on pension planning.
It is important to take independent financial advice before making any financial decisions.
All information is based on Farrell Financial Planning’s understanding of UK law & HMRC practice in the UK. Tax and legislation are subject to change.
All information is correct as at 27/10/21.
A pension is a long-term investment. The fund value can fluctuate and go down. All information is based on Farrell Financial Planning’s understanding of UK law & HMRC practice in the UK. Tax and legislation are subject to change.