Budget papers have confirmed the lifetime allowance (LTA) for pensions will increase to £1,030,000 for the tax year 2018/19.
The LTA currently stands at £1m and is about to be increased in line with the Consumer Prices Index (CPI). The increase, which happens in April next year, will be calculated in line with the change in CPI over the 12-month period between September 2016 and September 2017 rounded to the next £100. Inflation was recently confirmed at 3% - the highest level since April 2012 - meaning the LTA will increase to £1,030,000 for the tax year 2018/19.
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