Exposed: 6 Lifetime Allowance Tax Charge Myths
How well do you understand the Lifetime Allowance tax charge?
The lifetime allowance is the maximum amount of pension savings which you can access tax efficiently in your lifetime. Prior to 2006 there was no limit to the amount you could save. The first lifetime allowance was set at £1.5m.
It rose to a peak of £1.8m for the 2010/11 tax year but has steadily dropped since as successive Governments have raided pensions to fund other projects.
You can now save up to £1m into a pension over your lifetime.
We get a lot of clients & prospective clients asking how this allowance will affect them, so we thought we would set the record straight. Below are the most common myths we hear.