Advisers should never base a decision on one form of tax but consider the impact of all taxes throughout a client's lifetime, says Neil MacGillivray as he works through an LTA/IHT example showing why
Earlier this month it was revealed the amount received by HM Revenue & Customs in respect of the lifetime allowance (LTA) charge has almost trebled in just three years - from £40m in 2014/15 to £110m in 2016/17. Over the same period, the number of individuals who breached the allowance has more than doubled - from 1,020 to 2,410. Given the reduction in the standard LTA from £1.5m to £1.25m in 2014/15 then to £1m in 2016/17, it does not take a rocket scientist to work out the reasoning behind this. Even with the standard LTA in 2018/19 increasing in line with CPI to £1.03m, the trend for ...
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