Could the Lifetime Allowance be increasing?

25 Sep 2017

The Lifetime Allowance (LTA) is the overall amount of pension savings that you can have at retirement without incurring a tax charge (excluding any State Pension benefits).

With effect from April 2016 the LTA reduced from £1.25 million to £1 million. At the same time it was announced that by April 2018 the LTA would increase annually by inflation.

The Treasury has recently confirmed that with effect from 6 April 2018, the Government intends to index the standard LTA annually in line with the Consumer Prices Index (CPI).

We’ll keep you updated whenever further information about the LTA is released.