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How to avoid breaching the lifetime allowance
The pension lifetime allowance rose by £18,100 to £1.0731 million in April 2020. While this is good news, the fact remains that a growing number of people are breaching the allowance and facing a 55% tax charge on any withdrawals they make from pension savings above this amount. If the excess is taken as an income, the tax charge reduces to 25%. Here, we discuss the various options you have for protecting your pension against the lifetime allowance.
Pensions and retirement4 minute read
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