Annual limit reduced to £50k; Lifetime allowance cut to £1.5m

Financial secretary to the Treasury, Mark Hoban, also said the lifetime allowance would be reduced from £1.8m to £1.5m from April 2012. The government estimates an annual allowance of £50,000 will affect 100,000 pension savers - 80% of those will have incomes over £100,000. Any unused annual allowance in one tax year can be carried forward to the following three tax years. To protect individuals who exceed the annual allowance due to one-off "spike" in accrual, the Government will allow individuals to offset this against unused allowance from previous years. Tax relief will be g...