Lifetime Allowance and Fixed Protection Update

Published on Friday, 28 October 2011

The Lifetime Allowance for pension plans falls from £1,800,000 to £1,500,000 WEF April 2012.  This will bring far more people into the 55% LTA tax charge and it will hit those in final salary schemes particularly badly

Action needs to be taken NOW to avoid as much tax as possible.  Unfortunately there is no single fix to help everyone however, for many, taking pensions before April 2012 is the best solution even if you have to pay some 50% income tax meantime.

We have many clients affected by these pension rules (NHS clients seem particularly badly hit).  We have a client note available with the basic options open to you.  If you would like a copy please contact us.   We have a longer article on Fixed Protection within our Autumn Bulletin.

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