{"id":1067,"date":"2014-10-31T16:22:27","date_gmt":"2014-10-31T16:22:27","guid":{"rendered":"http:\/\/www.newsfin.co.uk\/news\/?p=1067"},"modified":"2014-10-31T16:22:27","modified_gmt":"2014-10-31T16:22:27","slug":"lifetime-allowance-2","status":"publish","type":"post","link":"https:\/\/www.vizionwealth.co.uk\/news\/lifetime-allowance-2\/","title":{"rendered":"Lifetime Allowance"},"content":{"rendered":"

Limiting the amount of tax relief you’re allowed <\/strong><\/p>\n

You can save as much as you like into a pension, but there is a limit on the amount of tax relief you’re allowed.\u00a0The Lifetime Allowance for pensions is currently \u00a31.25m (2014\/15).\u00a0In essence, the Lifetime Allowance is intended to cap the level of tax-advantaged pension funds that an individual can accumulate within their lifetime.\u00a0You usually pay tax on any private pension savings above the lifetime allowance.<\/p>\n

You’ll get a statement from your pension provider telling you how much tax you owe if you go above your lifetime allowance. Your pension provider will deduct the tax before you start getting your pension. You still need to report the tax deducted by filling in a\u00a0Self Assessment tax return\u00a0\u2013 you’ll need\u00a0form SA101\u00a0if you’re using paper forms.<\/p>\n

Rate of tax<\/strong>
\nThe rate of tax you pay on pension savings above your Lifetime Allowance depends on how the money is paid to you \u2013 the rate is:<\/p>\n

– 25% if you get it as a regular payment (‘annuity’)
\n– 55% if you get it as a lump sum<\/p>\n

If you die before taking your pension,\u00a0 HM Revenue & Customs bills the person who receives your pension for tax you owe on pension savings above your Lifetime Allowance.<\/p>\n

If you have Lifetime Allowance protection<\/strong>
\nLifetime Allowance protection increases your Lifetime Allowance. Check your protection certificate to work out your Lifetime Allowance if you have:<\/p>\n

– primary protection
\n– enhanced protection
\n– fixed protection
\n– fixed protection 2014
\n– individual protection 2014<\/p>\n

You’ll lose enhanced protection, fixed protection or fixed protection 2014 if you don’t\u00a0opt out\u00a0within a month of
\nbeing automatically enrolled in a workplace pension.<\/p>\n

You may also lose enhanced protection, fixed protection or fixed protection 2014 if you:<\/strong><\/p>\n

– make new savings in a pension scheme
\n– consolidate pension scheme money<\/p>\n

You may be able to\u00a0apply for individual protection 2014\u00a0if your pension savings were above \u00a31.25 million on 5 April 2014.<\/p>\n

If you have the right to take your pension before 50
\nYou may have a\u00a0reduced Lifetime Allowance\u00a0if you have the right to take your pension before you’re 50 under a pension scheme you joined before 2006. This only applies to people in\u00a0certain jobs\u00a0(e.g. professional sports, dance and modelling) who start taking their pension before they’re 55.<\/p>\n

Your Lifetime Allowance isn’t reduced if you’re in a\u00a0pension scheme for uniformed services\u00a0(e.g. the armed forces, police and fire services).<\/p>\n","protected":false},"excerpt":{"rendered":"

Limiting the amount of tax relief you’re allowed You can save as much as you like into a pension, but there is a limit on the amount of tax relief you’re allowed.\u00a0The Lifetime Allowance for pensions is currently \u00a31.25m (2014\/15).\u00a0In essence, the Lifetime Allowance is intended to cap the level of tax-advantaged pension funds that… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,5],"tags":[],"_links":{"self":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1067"}],"collection":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/comments?post=1067"}],"version-history":[{"count":0,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1067\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/media?parent=1067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/categories?post=1067"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/tags?post=1067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}