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Contact mePension Lifetime Allowance explained
Wherever you live in the world if you hold British pensions that have a value in excess of £600,000 or a Final Salary scheme with a projected income greater than £45,000 then you may have a problem with being hit with tax penalties in the future based on British tax calculated on excess over the pension lifetime allowance (LTA), and you should be planning for it now.
If you live in the UK then you should take some action and maybe advice from experts to reduce any tax in excess of the LTA.
If you live outside the UK you should only discuss this complicated subject with an authorised and regulated expert from the UK, and ideally one with international experience as you still have to pay excess tax as the British LTA still applies.
Be Aware!
If you access any pension funds in excess of the current Lifetime Allowance or your Protected amount, then you will pay tax either at the point of crystallisation* or upon any of the events listed here
*Crystallisation is a term used to describe the taking of income and / or capital usually through UFPLS or flexible Drawdown or purchasing an annuity.
There are methods by which you can reduce the tax you may have to pay, by taking action now!
Pension Lifetime Allowance changed in April 2016 and action needs to be taken by people with pensions likely to be greater than £1,000,000 so that they can avoid having taxes imposed later. This is how the Pension Lifetime Allowance has changed since 2006:
| 2006/07 | £1,500,000 |
| 2007/08 | £1,600,000 |
| 2008/09 | £1,650,000 |
| 2009/10 | £1,750,000 |
| 2010/11 | £1,800,000 |
| 2011/12 | £1,800,000 |
| 2012/13 | £1,500,000 |
| 2013/14 | £1,500,000 |
| 2014/15 | £1,250,000 |
| 2015/16 | £1,250,000 |
