Budget 2015 Pension Lifetime Allowance £1m. The new Pension Lifetime Allowance of £1m will mean that Directors, GPs and other Senior Executives with funds over the £1m value limit risk paying a 55% tax charge on the value of their pension fund in excess of the £1m allowance. Unless they have ring fenced their funds at the previously higher allowance value. You can still ring fence your pension fund at the previously higher allowance value.
The trap for those with defined benefit pension schemes is that they are valued at 20 times the annual pension that they are entitled to, when being measured against the £1m limit.
Budget 2015 Pension Lifetime Allowance £1m
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