MSE News: Autumn Statement: Pensions tax relief limit to drop
Comments
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Remember that the percentage of lifetime allowance used is calculated at the time of crysalisation/taking benefits and never again for that pension pot, however much it grows to later.
Ah, I see. That's most helpful, thank you, James.
So if my company definedbenefit+AVC pension pot was worth £300K when my company pension started to be paid 10 years ago, that pension only uses up £300K of my lifetime pension allowance however much that £300K is worth today?0 -
Right, unless there was some change in the rules along the way that I don't know about - I haven't been watching the rules for as long as ten years. If it was the last five years or from now, the answer is yes.
You should have received a statement saying how much of the lifetime allowance was used when you started to get the income, if the current sort of rules applied. That percentage then sticks with you for the rest of your life, with any new crystalisations adding to the percentage used until you hit 100% and penalties start.0 -
BeatTheSystem wrote: »Is there any word on if fixed protection can be applied for and when?
Yes, but a trifle vague. I suggest you (and everyone else!) reads the full statement.
http://cdn.hm-treasury.gov.uk/autumn_statement_2012_complete.pdf
The verbal statement (and the press "summaries") are a complete waste of time and you really need to work through the whole thing to know what's really being planned.
It looks like they're are planning to be flexible regards the new lifetime allowance, but GOK what will actually be done.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Bear in mind that it's £300k expressed as a percentage of the lifetime allowance available at the point you commenced the benefit. As such, if you commenced the pension when the LTA was £1.8M, you would have used 16.7% of your lifetime allowance, leaving 83.3%. This year, you would therefore have £1.25M remaining allowance rather than £1.2M.Ah, I see. That's most helpful, thank you, James.
So if my company definedbenefit+AVC pension pot was worth £300K when my company pension started to be paid 10 years ago, that pension only uses up £300K of my lifetime pension allowance however much that £300K is worth today?
Pre A-Day (6 April 2006) commencements can a little trickier to work out, but the same principle applies: a percentage of your lifetime allowance is used at each lifetime allowance test rather than a cash value.I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
Does a military service pension (non-contributory) commenced in 1994 and paying a monthly income until my death play any part when calculating the lifetime allowance?
My SIPP is currently at 50% of the lifetime allowance and therefore I am concerned that my service pension might tip me towards the limit.Old dog but always delighted to learn new tricks!0 -
Can anyone recommend a good independent pensions advisor? i have not got a clue what you are all talking about and as i am 52 (and female) i think i should start to make an effort!
Any advice welcome!
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Any advice welcome!
Start a new thread (with a good subject!), explain your situation, needs and worries, and I'm sure you'll get good input.
Who you need advice from, and how much of it, varies greatly depending on the above.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
I presume the carry-forwards of unused allowance in 2014/15 will be based on the current £50k limit, not the lower £40k limit? Can't find anything specific on this in the budget documents.
Eg say someone contributed £40k pa in 2011/12, 12/13 and 13/14. Will they get £30k available for carry forwards to 14/15, or nothing?
When they lowered the limit to £50k in 2011, they only allowed carry-forwards of unused allowance based on the new limit not the old limit for the previous tax years (but that was a massive drop, so I guess they couldn't allow it based on the the old limits!)
A summary I have read this morning from one of the providers would suggest that £50k limit will still be available for carry forward from 11/12, 12/13 and 13/14. Wouldn't take that as confirmation though.I am an IFA. Any comments made on this forum are provided for information only and should not be construed as advice. Should you need advice on a specific area then please consult a local IFA.0
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