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

'Nobody is big enough not to be bought'

'Nobody is big enough not to be bought'

Roderic Rennison on the future of deals in the advice industry

Isabel Baxter
clock 20 March 2026 • 1 min read
PA Awards 2026: Photos from the night

PA Awards 2026: Photos from the night

Celebrating the advice profession's best

Professional Adviser
clock 20 March 2026 • 1 min read
Feel Good Friday: PA Awards attendees raise £15,000 for Go Beyond

Feel Good Friday: PA Awards attendees raise £15,000 for Go Beyond

Best amount ever raised

Professional Adviser
clock 20 March 2026 • 1 min read