Lifetime Allowance Freeze

The Pre Budget Report of the 24th November announced the intention to freeze the Lifetime Allowance (LTA) at the 2010/2011 level of £1.8m, until at least 2015/2016.

The LTA is the maximum permitted total of all pension assets on vesting, which will not incur additional tax charges. The LTA has previously risen annually but the freeze will mean it is likely to catch a greater proportion of people drawing benefits between 2011 and 2016.