Axa Wealth's Andy Zanelli on ten key facts advisers should know about the forthcoming reduction to the lifetime allowance...
The government has announced that the lifetime allowance (LTA) will reduce from the current level for 2011/12 of £1.8m to £1.5m from 6 April 2012. 1. The LTA was introduced at A-Day (6 April 2006) and clients could have expected to have an LTA of around £1,947,000 under the original proposals (assuming a 4% increase after 2010/11). 2. As well as the current forms of protection for those with large pension funds, primary and enhanced, we will now have a new variation called ‘fixed' protection. 3. It is easy to identify those clients with funds already over the new £1.5m limit. There...
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