Lifetime Allowance factsheets

20 March 2015

It was announced at Budget 2015 that legislation will be introduced in a future Finance Bill to reduce the pensions Lifetime Allowance to £1 million, with effect from 6 April 2016.

Transitional protections for pension rights already over £1 million will be introduced alongside this reduction to ensure the change is not retrospective. These protections will have the same effect as those introduced for previous changes to the Lifetime Allowance.

The Government will work with industry to ensure that these protections are implemented in the simplest way possible.

The Treasury has produced fact sheets on the Lifetime Allowance change, one pitched at the level of public understanding, and another at those working in the industry.

Lifetime Allowance Factsheet - Industry

Lifetime Allowance Factsheet - Public