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

Verso rejects platform incentives model, says adoption must be earned

Verso rejects platform incentives model, says adoption must be earned

Nucleus-built platform rolled out across advice group with no mandated use as consolidator targets £5bn AUM

Sahar Nazir
clock 27 June 2025 • 2 min read
Number of highly vulnerable clients slides

Number of highly vulnerable clients slides

Dynamic Planner research finds

Jen Frost
clock 27 June 2025 • 2 min read
Anthony Carty: Why the nuance of private equity in advice matters

Anthony Carty: Why the nuance of private equity in advice matters

When done right, PE can help deliver sustainable growth for the whole market

Anthony Carty
clock 27 June 2025 • 4 min read