As trailed extensively in the media, the Chancellor today confirmed changes to pension taxation rules in his Budget Statement.
From April ’23 Annual Allowance* will increase from £40,000 to £60,000 and Lifetime Allowance** will be abolished completely.
This is a positive development and one we have been lobbying for several years – read more. The changes to Annual Allowance will mean fewer Armed Forces people will be caught in the so-called pensions tax trap, and we will monitor in the future the effect that the increased threshold will have.
You can read the full Spring Budget 2023 Statement here, and you can also read our latest Pennant article on this topic here – Big pension tax changes in the Budget: what do they mean?
*Annual Allowance – the most you can save in your pension pots in a tax year before you have to pay tax
**Lifetime Allowance – the maximum amount you can draw from pensions – workplace or personal – in your lifetime without paying extra tax
