Tax allowances have shrunk 6% in the last decade - Quilter

‘Take advantage of the situation today’

Ayesha Venkataraman
clock • 2 min read

Six of the eight main UK tax allowances were found to be either frozen or decreased in the past decade, reducing by an average of 6%, according to analysis by Quilter.

When analysing the eight main UK tax allowances over the decade, Quilter found that the pensions annual allowance - the limit on how much money you can build up tax-free in your pension in any one tax year while still benefiting from tax relief - has shrunk by 20% from £50,000 to £40,000, while the lifetime allowance has dropped by 28% from £1.5m to £1.07m. Pension savers have also been hampered by a 60% reduction in the money purchase annual allowance, which was introduced in the 2015/16 tax year, from £10,000 to £4,000. Additionally, it found that the dividend allowance, which was o...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

PA360: Check out the photo gallery from our 2024 conference

PA360: Check out the photo gallery from our 2024 conference

Our flagship conference took place last week at 133 Houndsditch in London

Professional Adviser
clock 30 April 2024 • 1 min read
Clients regret not working with an adviser sooner

Clients regret not working with an adviser sooner

Around 46% started using an adviser when they were 40 or older

Isabel Baxter
clock 30 April 2024 • 2 min read
St James's Place client funds reach £179bn due to investment returns

St James's Place client funds reach £179bn due to investment returns

Client funds reach record £179bn in first quarter of the year

Sahar Nazir
clock 30 April 2024 • 1 min read