Tax allowances have shrunk 6% in the last decade - Quilter

‘Take advantage of the situation today’

Ayesha Venkataraman
clock • 2 min read

Six of the eight main UK tax allowances were found to be either frozen or decreased in the past decade, reducing by an average of 6%, according to analysis by Quilter.

When analysing the eight main UK tax allowances over the decade, Quilter found that the pensions annual allowance - the limit on how much money you can build up tax-free in your pension in any one tax year while still benefiting from tax relief - has shrunk by 20% from £50,000 to £40,000, while the lifetime allowance has dropped by 28% from £1.5m to £1.07m. Pension savers have also been hampered by a 60% reduction in the money purchase annual allowance, which was introduced in the 2015/16 tax year, from £10,000 to £4,000. Additionally, it found that the dividend allowance, which was o...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

AJ Bell adds MPS range to Mabel Insights platform

AJ Bell adds MPS range to Mabel Insights platform

AJ Bell: ‘The Mabel Insights platform provides advisers with a wealth of information’

Sahar Nazir
clock 11 February 2025 • 1 min read
Quilter CEO: 'It's really tough to be a platform'

Quilter CEO: 'It's really tough to be a platform'

‘We can’t build a platform that is for every single adviser’

Sahar Nazir
clock 10 February 2025 • 1 min read
M&A process a 'disturbing event' for IFAs

M&A process a 'disturbing event' for IFAs

‘Acquisitions have emotional toll on everyone involved'

Sahar Nazir
clock 10 February 2025 • 6 min read