Last Chance Pension Opportunities

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If you have a large pension fund then you may be aware that the Lifetime Allowance is reducing from £1.8 million to £1.5 million this April. The Lifetime Allowance is the total pension value any one individual may accrue without incurring a tax charge. If you have a final salary pension scheme then your benefit entitlement from that scheme is multiplied by 20 then deducted from the allowance, so you may be closer to £1.5 million than you think.

By applying for Fixed Protection you are able to retain the higher £1.8 million allowance. However, you must cease all future contributions and the Revenue must receive your application by 5 April 2012.

For those of you still building your funds, there is the opportunity to make large pension contributions by carrying forward unused relief from previous years. From 5 April 2012 the ability to carry forward unused allowance from 2008/09 is lost forever, so this is a 'use it or lose it' opportunity. 

Rob Menhenitt
12 March 2012
 



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