Protecting pensions from the lifetime allowance

Helen Morrissey
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The lifetime allowance drops to £1.25m at the end of this tax year exposing some people to potential tax charges. Helen Morrissey looks at what advisers can do to protect their clients.

In April 2014 the lifetime allowance will drop to £1.25m, and advisers will need to speak to those clients likely to breach this amount about how best to protect their pension pot. Pension pots above this level could find themselves subject to a 55% tax charge on the residual amount. While advisers are talking to clients with pensions close to this amount, figures from HMRC show we could be underestimating the scale of the problem. While 30,000 people could find themselves with an immediate liability by 6 April 2014, the research also found up to 360,000 people could find themselves w...

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