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