LTA Frozen

RuleTheWorld

Budget 2021.
Life time allowance frozen at £1,073,100 until at least the end of 2025-26 financial year.
That's going to make a material difference to a lot of people.

Albermarle

About £40K worth of difference ......

tibbles209

It's not great, but overall I've come away from the budget feeling relieved. Could have been a lot worse. At least we are getting to keep higher rate tax relief for the time being.

JoeCrystal

I am somewhat annoyed that virtually very little has changed, especially with the income tax thresholds frozen for the next five years. 

RuleTheWorld

Albermarle said:

About £40K worth of difference ......

It doesn't seem like a lot maybe for those at retirement but for looking at a retirement in 2040 and estimating inflation at 3.5% then it changes the LTA from £2.1M to £1.7M 

RuleTheWorld

tibbles209 said:

It's not great, but overall I've come away from the budget feeling relieved. Could have been a lot worse. At least we are getting to keep higher rate tax relief for the time being.

Yes, that's good news and fingers crossed stays for a long time to come.

ratechaser

Well at least it wasn't decreased any further... the only (sort of) comfort is that with inflation as low as it is, it would only have gone up by £5800 this year, so no huge loss.

I was only half listening in, don't think anything was mentioned on annual limits and tax reliefs though?

Albermarle

It's not great, but overall I've come away from the budget feeling relieved. Could have been a lot worse. At least we are getting to keep higher rate tax relief for the time being.

Depends where you are on the retirement journey ....

t doesn't seem like a lot maybe for those at retirement but for looking at a retirement in 2040 and estimating inflation at 3.5% then it changes the LTA from £2.1M to £1.7M 
Except a lot of people retiring around now , tend to kick the LTA issue into the future , when they reach 75.

Thrugelmir

A number of thresholds have been frozen. Everybody is sharing at least part of the burden. 

TVAS

We have to repay the debt and so we will with non increase tax bands. As for the LTA people with large pension funds tend to have other assets so this seems to be targeting the correct people i.e. those who are affluent. 
Corporation tax brings little to the tax take only 8% but our !!!!!! government did nothing about a turnover tax for the tech firms. We like all the other countries need that tax revenue.

Albermarle

We have to repay the debt and so we will with non increase tax bands. As for the LTA people with large pension funds tend to have other assets so this seems to be targeting the correct people i.e. those who are affluent. 

You are right, but as it is a pensions forum it wouldn't be natural not to see some adverse comments about LTA freezing. I thought they may have stopped salary sacrifice being used to avoid NI, but I think that would have been more complicated ( but significantly more lucrative I guess ) 

government did nothing about a turnover tax for the tech firms. We like all the other countries need that tax revenue

Yes that was a disappointment . Maybe they are still trying to work out how to do it ?