- Chancellor abolishes the lifetime allowance, and increased the annual allowance and the money purchase annual allowance
- People will be able to save more for retirement without incurring a tax charge
A trio of pension tax changes announced in chancellor Jeremy Hunt’s Spring Budget today will enable people to save more for retirement tax-free.
In a move that goes beyond pre-Budget expectations, Hunt abolished the lifetime allowance (LTA), which currently caps the total amount savers can hold in their pension pots without incurring a tax charge at £1,073,100. The annual allowance and money purchase annual allowance (MPAA), which set how much people can contribute to their pension pots tax-free every year, will increase.