Pension allowance increase to 60K

[Keanu2020]

So, the pension increase to 60K a year that is planned. On the face of it this might make inside IR35 roles appealing if can push more to a pension rather than hand over in high tax rates / bands.

Hopefully can top up past years as well.

Source:

https://www.bbc.co.uk/news/business-64949083

[Nava39]

How can you possibly top up past years? surely its only from 2023 onwards

Certainly long overdue, should bring multiple benefits

[ladymuck]

I wouldn't expect the annual limit to be applied retrospectively. 40k for past years, 60k going forward from the new tax year

[Dark Black]

Labour will overturn it when they get in next year.

[Fred Bloggs]

Labour will overturn it when they get in next year.

Indeed. They have already said so.

[Lance]

Labour will overturn it when they get in next year.

they will overturn the removal of the lifetime cap. Not sure they'll reduce the annual cap.

[eek]

they will overturn the removal of the lifetime cap. Not sure they'll reduce the annual cap.

£60,000 is basically where it should be if it had increased by inflation.

Lifetime cap will likely return. And the 25% tax fee lump sum will be kept at £250,000 for evermore.

[ladymuck]

I read somewhere that the lifetime cap change doesn't kick in until 2024, less than a year before the next GE, is that the same for the annual allowance?

[jamesbrown]

I read somewhere that the lifetime cap change doesn't kick in until 2024, less than a year before the next GE, is that the same for the annual allowance?

All of these changes apply from 6 April 2023.

[ladymuck]

All of these changes apply from 6 April 2023.

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

The lifetime allowance (LTA) caps the amount that workers could save into their pension tax-free at £1.073m. However, the LTA charge will now be removed starting from April 2023, and abolished entirely from April 2024.

What does that mean then?