Martin Tilley: Every little helps when it comes to the LTA

Timing is everything

clock • 3 min read

Martin Tilley highlights why the timing of drawing benefits could prove important when managing and minimising clients' LTA tax charges

The lifetime allowance (LTA), which is currently set at £1m, is scheduled to increase in line with inflation from April 2018. It is important that advisers, paraplanners and clients are aware of this increase as the timing of benefits could prove crucial in managing a clients' tax affairs. This could be of particular importance for clients phasing their vestings as part of an income strategy in the decumulation stage. The increase to the LTA from April next year is calculated in line with the change in Consumer Prices Index (CPI) over the 12-month period between September 2016 and Sep...

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