A 5 minute guide to the Lifetime Allowance
From 6th April 2016, the Lifetime Allowance for pensions reduced from £1.25m to £1m. This sounds like a large figure but it can be surprisingly easy to breach what, on the face of it, seems like a very generous allowance. In essence, the Lifetime Allowance is intended to cap the level of tax advantaged pension funds that an individual can accumulate within their lifetime. As you might imagine, a tax charge is imposed for benefits accrued in excess of the Lifetime Allowance. I