AA and LTA changes - key points you need to know

Published by Nilesh Shah on

This briefing highlights the key changes to the annual allowance (AA) and lifetime allowance (LTA) that came into force from 6 April 2016 and 6 April 2020.

On 6 April 2014 the AA reduced to £40,000 and on 6 April 2016 it was again reduced for high earners, with further changes from 6 April 2020.

The maximum level of benefits that an individual can draw from all registered pension schemes without incurring tax charges reduced to £1.25m from 6 April 2014 and reduced again from 6 April 2016 to £1m. The LTA has been increasing in line with CPI from 6 April 2018 when it was increased to £1.03m, then increased to £1.055m from 6 April 2019 and to £1,073,100 from 6 April 2020.

Download the briefing to find out more.

AA and LTA changes - key points you need to know