The pension lifetime allowance (LTA) will be increase by £30,000 to £1,030,000 on 6th April 2018.
The lifetime allowance was previously higher, but has been cut several times in recent years.
Although this increase in lifetime allowance is reasonably small, it is a huge step in the right direction for pension savers with larger pension pots.
The rules around lifetime and annual allowances are very complicated, so it is important to ensure that you take independent financial advice before making any pension related decisions.
Farrell Financial Planning are independent financial advisers (IFAs) based in Glasgow. We offer independent financial advice on pensions, investments and much more.
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.