Budget to boost lifetime allowance for pension savings

ML420cdi

For those currently limited to £4K a year MPAA pension contributions, has anything changed?

Just read "The government will increase the Money Purchase Annual Allowance from £4,000 to £10,000 and the minimum Tapered Annual Allowance from £4,000 to £10,000 from 6 April 2023"....lovely that's what I wanted.

Clive_Woody

zagfles said:

cfw1994 said:

Crikey.....he just said he was abolishing the LTA.
ABOLISHING it.

Did I mis-hear something?

Nope, I was open-jawed as well!

if I type what my wife said I think the moderators might be blocking my account. Safe to say it was somewhat of a surprise....a good one

Pat38493

ML420cdi said:

For those currently limited to £4K a year MPAA pension contributions, has anything changed?

Just read "The government will increase the Money Purchase Annual Allowance from £4,000 to £10,000 and the minimum Tapered Annual Allowance from £4,000 to £10,000 from 6 April 2023"....lovely that's what I wanted.

What is the "minimum tapered annual allowance" - is that the amount you can pay in if you have no employment income i.e. the famous £2880 thread?

Pensions_matter_2

The Treasury Spring Budget 2023 just published has more detail. 

Malthusian

The tapered AA is indeed going back to a £10,000 minimum. Still makes little odds to anyone who qualifies as "super wealthy". 

DoublePolaroid

I heard him say he wasn’t raising the LTA and I got a pang of disappointment before he said he was abolishing it. 

Who knew the walking example of Cockney rhyming slang had decent comic timing?

jaypers

Keen to understand if the abolishment of LTA applies to those who have already fully crystallised and have excess pension savings that was liable to future tax at 75.

marlot

cfw1994 said:

Crikey.....he just said he was abolishing the LTA.
ABOLISHING it.

Did I mis-hear something?

But the tax free commencement lump sum kept at the current level.

tiring33

Pensions_matter_2 said:

The Treasury Spring Budget 2023 just published has more detail. 

The Spring Budget 2023 document just published says:

'Workers aged over 50 left the labour market in the greatest numbers during the COVID-19 pandemic. To encourage this group to extend their working lives, the government is increasing tax relief on pensions. The Lifetime Allowance charge will be removed from April 2023 before the Allowance is abolished entirely from April 2024, and the Annual Allowance will be raised to £60,000. These reforms will help ensure that high skilled individuals such as NHS clinicians are not disincentivised from remaining in the workforce.'

Not sure what the difference between 'removed from April 2023' and 'abolished entirely from April 2024' is.

Sterlingtimes

What happens to LTA tax at age 75?