Treasury confirms tax-relief restriction plans

14/10/2010

Financial Secretary to the Treasury, Mark Hoban MP, announced today, 14th October 2010, that:
• the Annual Allowance will be set at £50,000 from April 2011, reduced from £255,000
• the Lifetime Allowance (LTA) will be set at £1.5m from April 2012, reduced from £1.8m
• unused Annual Allowance can be carried forward up to three years.

Other issues subject to further consultation, are:
• Protection for pension savings already exceeding £1.5m
• Treatment of those with Enhanced Protection from A-Day (6 April 2006), who are currently exempt from the LTA.

The current anti-forestalling measures remain in force without change.