Lifetime Allowance Tax
According to YourMoney.com “Government rakes in £110m in pension Lifetime Allowance tax”. The article states “There has been a 40% increase in the number of people falling foul of the pension Lifetime Allowance in the 2016/17 tax year, after it was cut in April 2016”. The article continues "Many believe the LTA is a tax on the rich, but as the figures show, breaching the LTA is a very real possibility for substantial parts of the population, according to Old Mutual". Therefore early planning and identifying the potential risk of reaching the limit can help to expand the options available early on for those at risk.
At Cotswold Independent Financial Services, our long term approach with clients means we can look at the options when it comes to pension planning and take into account Capital Gains Tax allowance, the use of ISAs and the dividend allowance. Read the full article