The frozen lifetime allowance for pension contributions is now in place. Here Barrie Dawson runs through some examples of what it could mean for clients. Calculators at the ready
With the lifetime allowance (LTA) frozen until the end of the 2025/26 tax year, what does this mean for those who thought CPI increases would save them from LTA excess charges? Stating the obvious, it means that they may now end up incurring LTA charges, but tax charges aren't always a bad thing if the client ends up richer. What's crucial is that the calculations are revisited so that the client knows what to expect as a result of the freeze. There are lots of different scenarios that impact the calculations. Some will still be contributing/accruing further benefits and others wil...
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