The Finance Bill just published confirms the lifetime allowance will start at £1.5m in the 2006-7 fiscal year, rising to £1.8m by 2010-11, with an annual allowance of £215,000 in the first year, rising to £255,000 over the same period.
There will be a lifetime allowance charge of 25% on funds in excess of the lifetime limit, or 55% if taken as a lump sum, the Bill states. There will be a 40% annual allowance charge on fund in excess of the annual allowance limits. The minimum benefit age will rise from 50 to 55 by 2010. IFAonline
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