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...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
