UK Lifetime Allowance Taxes – How to Protect Your Pension
While having a pension fund of over £1 million may seem ideal, retirees face a complication. If they contribute over the Lifetime Allowance limit, they face potentially substantial tax bills for the privilege. These allowances allow HMRC to impose taxes of up to 55% against large pension planning withdrawals – which could have a dramatic impact on your retirement budget. Expats have several available options to safeguard their life savings from this steep tax bill and minimise exposure. We’ll run through some of those potential strategies here. Chase Buchanan works with expats worldwide, providing comprehensive financial advice and wealth management support to ensure your financial future is protected. If you are concerned about hitting the Lifetime Allowance and triggering a disastrous tax charge, please get in touch. Explaining the UK Lifetime Allowance The Lifetime Allowance (LTA) is fixed at £1,073,100. The government changed this limit in April 2020, and