Pension – lifetime allowances
New legislation came into force on 15 April 2010 in relation to the standard lifetime and annual allowances for pension schemes.
The legislation follows the announcement by the Chancellor in the Budget that the pensions scheme 2010-11 Lifetime Allowance of £1.8 million and Annual Allowance of £255,000 will be frozen. The current rates will continue to apply at these levels for a further five tax years, i.e. up to and including the tax year 2015-16.
This will affect any pension scheme members who take pension and lump sum benefits on or after 6 April 2011 valued at more than £1.8 million and who do not have existing transitional protection, as well as pension scheme members with contributions of more than £255,000 per year.