The decision of a lifetime – how pension savers can avoid getting caught out by the latest cut in the lifetime allowance
Pensions are rarely out of the headlines these days, but how much attention do you pay to yours? Hundreds of thousands of pension savers could be facing a substantial tax bill at retirement as a result of the latest cut in the lifetime allowance (LTA). So how can you and your clients avoid getting caught out? The LTA is the maximum fund that you can build up across all of your pensions before incurring a 55% tax charge. If you think your pension funds are likely to breach the new £1.25m LTA, now or in the future, and you don't make some important decisions before 6 April 2014, it could lead to an unexpected tax bill of up to £137,500.
With a cut in the lifetime allowance looming, David Downie explains the steps pension savers can take to avoid a hefty tax bill
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