Pension allowance increase to 60K

[Maslins]

https://www.telegraph.co.uk/pensions...r-2023-budget/

What does that mean then?

Our understanding is for the next year, technically the lifetime limit is still there, but there's no penalty for going over it. From the following year, the lifetime limit itself is removed.

[jamesbrown]

https://www.telegraph.co.uk/pensions...r-2023-budget/



What does that mean then?

It’s a technicality. I’m not sure whether it’s a legislative technicality related to the FA or to help pension schemes adjust but, either way, the lifetime limit is effectively gone as of 6 April 2023.

[Smoggy]

From 6 April 2023 the LTA still technically exists but if you exceed it the charge is calculated at 0%. From 2014 it won't exist at all. End result is the same.

[Lance]

It won't stay under a labour government.
The new rules, it would seem, will allow for unlimited inheritance without IHT if you die under 75. That is not gonna stay.

What pisses me off is using pensions as a political football. Make the lifetime limit £1.5M or £2M will sort the issue with doctors, but scrapping it is just a tax break for the moderately wealthy.

[Keanu2020]

Anyone think any real risk Labour will retro tax the difference between 40K and 60K if they get in?

[sadkingbilly]

Anyone think any real risk Labour will retro tax the difference between 40K and 60K if they get in?

almost certainly

[jamesbrown]

Anyone think any real risk Labour will retro tax the difference between 40K and 60K if they get in?

Retrospectively tax anything above 40k in each year?

No chance. It would be an administrative nightmare and it would undermine the tax system in a way that the retrospection associated with "aggressive tax avoidance" doesn't - Labour is unlikely to want to create that chaos among a skeptical public. However, they'll certainly reverse the lifetime allowance and the extra 20k prospectively - both are stated policy AFAIK.