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.
*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
