Barrie Dawson: Winter is gone but the LTA freeze has arrived

LTA frozen until end of 2025/26 tax year

clock • 4 min read

The frozen lifetime allowance for pension contributions is now in place. Here Barrie Dawson runs through some examples of what it could mean for clients. Calculators at the ready

With the lifetime allowance (LTA) frozen until the end of the 2025/26 tax year, what does this mean for those who thought CPI increases would save them from LTA excess charges? Stating the obvious, it means that they may now end up incurring LTA charges, but tax charges aren't always a bad thing if the client ends up richer. What's crucial is that the calculations are revisited so that the client knows what to expect as a result of the freeze. There are lots of different scenarios that impact the calculations. Some will still be contributing/accruing further benefits and others wil...

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 Pensions

Petition pushing government to protect pension tax incentives gets 3,000 signatures

Petition pushing government to protect pension tax incentives gets 3,000 signatures

AJ Bell pushes to end ‘damaging speculation’ on tax-free cash and reliefs

Jenna Brown
clock 07 October 2025 • 2 min read
Standard Life launches 'affordable' pensions-focused advice arm

Standard Life launches 'affordable' pensions-focused advice arm

For existing Standard Life customers approaching retirement

Jenna Brown
clock 06 October 2025 • 2 min read
Clients need 'tailored approach' ahead of IHT on pensions

Clients need 'tailored approach' ahead of IHT on pensions

IHT ‘coming up more and more’ in conversations with clients

Sahar Nazir
clock 03 October 2025 • 2 min read