The lifetime allowance may have been introduced as part of 'pension simplification' back in April 2006 but given the constant tinkering it has seen since, writes Paul Squirrell, LTA planning can be far from simple
The lifetime allowance (LTA) may have been introduced as part of ‘pension simplification' on 6 April 2006 - A-Day, as it was known - yet, given the constant tinkering it has seen over the years, LTA planning can be far from simple. It was first introduced at a level of £1.5m and only affected a small proportion of the population. Since peaking at £1.8m though, for the tax years between 2010 and 2012, it has been reduced significantly. While it's good news the LTA is now increasing in line with CPI, the current level of £1.055m is still someway short of the starting and peak allowances. ...
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