Lifetime Allowance Up
Published / Last Updated on 21/10/2018
CPI inflation figures were released last Wednesday, with CPI at 2.4%pa. The September rate of inflation is the rate used to set increases in benefits and other allowances for the next tax year April 2019.
For pensions, currently the Lifetime Allowance, the maximum you can build up in pension funds without incurring additional tax charges during your lifetime is currently £1,030,000. This will therefore increase by September 2018 inflation to £1,054,800 in April 2019.
How is Lifetime Allowance calculated?
- Government set the rate.
- Inflation at September (previous calendar year)
- Rounded up to the nearest £100.
Who does it affect?
Anyone who has high value pensions may save just a little more tax.