Ever-popular Assembly regular, Les Cameron of M&G Wealth, joined us to answer the question ‘What’s going on with the lifetime allowance?’
Why? Because in his Budget statement to the House of Commons earlier this year, the Chancellor of the Exchequer, Jeremy Hunt, announced the removal of the amount you could hold in pension savings before becoming liable for tax.
And that’s quite the change. Because it’s not all that long since Hunt’s predecessors stood accused of levying ‘stealth taxes’ by freezing the LTA at to £1,073,100 – potentially exposing an influx of pension savers to tax liabilities thanks to the effect of inflation.
So with proposed legislation removing the LTA and introducing a rise in the annual allowance, doesn’t the future look rosey for pension savers and their pots?
Or do other proposed measures – like setting a limit of £268,275 on tax-free lump sums – muddy the waters a bit?
Well, that’s where Les came in. Because over the lunch-hour session he:
- recapped the saga of the lifetime allowance so far
- explained the changes that the government has proposed
- explored what’s already happened (and what’s still left to happen); and
- considered what it all means for paraplanners working on retirement planning cases for clients.
Be honest. This stuff is like catnip to a paraplanner isn’t it?
Listen now
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