Lifetime allowance cut: Ten things you need to know

The government has announced that the lifetime allowance (LTA) will reduce from the current level for 2011/12 of £1.8m to £1.5m from 6 April 2012. 1. The LTA was introduced at A-Day (6 April 2006) and clients could have expected to have an LTA of around £1,947,000 under the original proposals (assuming a 4% increase after 2010/11). 2. As well as the current forms of protection for those with large pension funds, primary and enhanced, we will now have a new variation called ‘fixed' protection. 3. It is easy to identify those clients with funds already over the new £1.5m limit. There...