December 2012: Pensions update
An overview of legal issues facing the pensions sector in the new year.
From 2014/15 the annual allowance and the lifetime allowance will be further reduced:
- annual allowance – reduced to £40,000; and
- lifetime allowance – reduced to £1.25m.
Note that this may potentially affect individuals before 6 April 2014, as the reductions apply to pension contributions/accrual in pension input periods (PIPs) which end in 2014–15. So, for example, if the PIP starts on 1 May 2013 and ends on 30 April 2014, the reduced allowances will start to apply from as early as 1 May 2013. Draft provisions are included in the Finance Bill 2013…
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