Kirsty Anderson: Why advisers should not fear the age 75 LTA tax charge

Current limit frozen until 5 April 2026

clock • 6 min read

There’s no need to fear the lifetime allowance tax charge, writes Kirsty Anderson. While it could mean more money is paid to HMRC ultimately it also means that more will be paid to the client…

 The lifetime allowance (LTA) is something that doesn't affect all clients but it is something that is affecting more and more people due to the limit being reduced following its introduction in 2006. This is a trend that's set to continue with the current limit frozen at £1,073,100 until 5 April 2026. And with many people having more than one pension pot it can often be challenging to calculate the LTA, particularly where a defined benefit pension may be involved.  We also need to consider the test against the LTA at age 75 which has become more commonplace since the introduction of ...

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

The importance of defining the roles within a SSAS

The importance of defining the roles within a SSAS

'Poor role discipline can create compliance, tax and fiduciary risk'

Caitlin Southall
clock 08 October 2026 • 4 min read
AJ Bell warns Budget could 'exacerbate' 76% pension lump sum withdrawal rate

AJ Bell warns Budget could 'exacerbate' 76% pension lump sum withdrawal rate

AJ Bell has called on chancellor John Healey to commit to a pension tax lock

clock 06 October 2026 • 2 min read
Rachel Vahey: Pension savers need stability, not another panic-fuelled tax raid

Rachel Vahey: Pension savers need stability, not another panic-fuelled tax raid

'Real-world consequences of allowing pension tax speculation to run unchecked'

Rachel Vahey
clock 05 October 2026 • 3 min read