The lifetime allowance and pension protection opportunities

Since 2006, the Government has set a limit on the amount of pension savings that a UK-based individual can build up without having to pay an additional tax charge, known as the lifetime allowance (LTA). From the 2014-15 tax year, it will drop to £1.25m. This means that the maximum pension an individual will be able to accumulate without incurring a one-off tax charge will be roughly £40,000 per annum – assuming current annuity rates and that they choose to receive a tax-free cash sum from their pension plan. 2014 pension protection opportunities There is, however, some good news. T...