The Lifetime Allowance (LTA) was introduced in April 2006 as a way of capping the tax-efficient withdrawals you can take from your pensions.
Protection from an LTA charge If you were concerned about a potential LTA charge in previous tax years you might have considered applying for one of the various forms of LTA protection which were available. These protections are too complex to explain here, but in summary the types of protection available were:
You may be to apply for 2 types of LTA protection (the deadline for Individual Protection 2014 was 05/04/2017). The 2 forms of LTA protection still available are:
You can read more about these protections on this page: Lifetime Allowance Protection
LTA charge If the value of the benefits you take from your pension exceeds the LTA in the tax year you take the benefits you may be subject to a LTA charge. In this scenario you will be given a choice between drawing the excess as a lump sum or as an income. The tax charges are as follows:
| Excess over LTA drawn as | LTA charge on excess |
|---|---|
| Lump sum | 55% |
| Income | 25% (plus Income Tax) |
Lifetime allowance amounts The LTA has changed a number of times since 2006, as shown in the table below:
| Tax year | Lifetime Allowance (LTA) amount |
| 2006-07 | £1.50M |
| 2007-08 | £1.60M |
| 2008-09 | £1.65M |
| 2009-10 | £1.75M |
| 2010-11 | £1.80M |
| 2011-12 | £1.80M |
| 2012-13 | £1.50M |
| 2013-14 | £1.50M |
| 2014-15 | £1.25M |
| 2015-16 | £1.25M |
| 2016-17 | £1.00M |
| 2017-18 | £1.00M |
| 2018-19 | £1.03M |
| 2019-20 | £1.055M |
| 2020-21 | £1.073M |
We offer a free, no obligation, initial meeting. This gives you an opportunity to find out more about our company and to get to know your adviser. After your initial meeting your adviser will set out how we can help you and what fees will be payable for our services. If you choose not to use our services no fees will be payable. We set different fees for different types of work, which is explained in more detail on the link below.
Learn moreIf you would like one of our friendly advisors to give you a call, please enter your details below.
Call us today on
Alternatively fill in your details below to book a free initial consultation with one of our advisers.
Enter your details below to book a free consultation.
