Autumn Budget 2017
28 Nov 2017
In the autumn budget last week the Chancellor, Phillip Hammond, had very little to say about pensions.
There was speculation prior to the budget announcement that the Chancellor may look again at both the Lifetime Allowance (LTA) and the Annual Allowance (AA). Commentators had suggested that the planned increase to the LTA in April 2018 could be postponed and that the Chancellor may also be considering a further reduction to the AA.
In his statement, the Chancellor confirmed that the planned increase to the LTA would happen in April. The increase, which would be in line with the increase in the Consumer Prices Index, will see the LTA increase from £1m to £1.03m with effect from April 2018. The AA will remain unchanged at £40,000 for the tax year 2018/19.
Even though the majority of people are unlikely to be affected by the LTA, if you suspect that the value of all your pension benefits might be close to the LTA limit, you should take action and seek independent financial advice. If you do not have an adviser you can find details of financial advisers in your area by visiting www.unbiased.co.uk.