Pre-budget Statement
from Nov 2008

02-02-2009

 

Although the pre budget statement was not inundated with pension issues, the government made some important decisions with regards to the Lifetime Allowance and Annual Allowance, as follows:

• The Lifetime Allowance will remain at £1.8 million from 2010/11 through to 2015/16

• The Annual Allowance will remain at £255,000 from 2010/11 through to 2015/16

Linked with the Lifetime Allowance is the Trivialisation limits, which is 1% of the Lifetime Allowance i.e. £18,000 from 6th April 2010. As the Lifetime allowance will remain the same for the next five years from 2010, the triviality limit will therefore also remain the same at £18,000 until 5th April 2016.

Advisers may wish to consider whether they have any additional clients who should apply for primary or enhanced protection given the freezing of the lifetime allowance.