Focus 123 – HMRC Guidance and LTA Change
With the start of a new tax year now in sight, the Treasury have now formalised the increase in the Standard Lifetime Allowance (SLA) for the 2019/2020 tax year:
|From 6th April||2018||2019|
At present, the SLA increases each tax year is in line with the rise in CPI for the 12 months to the end of the previous September, with the Treasury formalising the increase in the regulations each year.
The SLA increase will not affect members who hold Enhanced Protection or have an enhanced Lifetime Allowance through Primary Protection, any form of Fixed Protection, or Individual Protection 2014 who will maintain their existing higher personal Lifetime Allowance. It will however replace a members personal Lifetime Allowance if they hold Individual Protection 2016 at a level lower than the new Standard Lifetime Allowance.