Lifetime Allowance advice

Tax benefits and the Lifetime Allowance

The Lifetime Allowance is effectively a limit on how much you can build up in pension benefits in the UK over your lifetime, while still enjoying the full tax benefits. The Lifetime Allowance is currently £1,073,100.

Calculating your tax burden can be complex to calculate accurately. However do speak to us if you would like to review your pensions and are concerned about a potential tax charge.

Lifetime Allowance advice

Many people think they will automatically be charged 55% tax on amounts over the Lifetime Allowance. Exceeding the Lifetime Allowance can lead to a taxation liability of up to 55% on any excess drawn above this amount.

However it’s not that simple. The rules are pretty complex. So we offer a no-obligation service to see if drawing down or taking your pension as a lump sum is appropriate for you. In addition we can explain different ways to manage the potential tax on any pension funds that exceed the Lifetime Allowance limits

We will do research, obtain your scheme information on your behalf and revert back to you to outline your options. Where your benefits are set to exceed the Lifetime Allowance, careful planning is required.

It is important to understand the various forms of lifetime allowance protection applicable, as well as the various benefit crystallisation events which can lead to the lifetime allowance tax charge becoming payable.

Here at PX we’re well placed to assist in helping you to determine the optimal course of action.

Speak to PX for pension transfer advice and solutions that are right for you.