2015 Summer budget

The budget on 8 July brings about further change for pensions.

The key announcements impacting pensions were:

Annual Allowance

The Input Period will be aligned to the tax year, this means that for the year to 5 April 2016 there will be transitional arrangements, which provide a higher Annual Allowance for the period 1 April 2015 to 5 April 2016
From the 2016/17 tax year, for those with income exceeding £150,000 from all sources, not just salary, the Annual Allowance will be reduced by £1 for every £2 of income over £150,000, to a minimum of £10,000

Lifetime Allowance (LTA)

It was confirmed that, with effect from 6 April 2016, the LTA will reduce from £1.25 million to £1 million. Transitional protection will be introduced, alongside this reduction, for those with pension rights already over £1 million with effect from 6 April 2018, the LTA will be indexed annually in line with the Consumer Prices Index

Once further details become available we will update the website.