UK Life Time Allowance Analysis. £1.8m to £1m in the last 4 years. Will you be exposed to 55% taxation? #UKPensions #QROPS #ReasonsForQROPS #IN
07 Sunday Feb 2016
Expatspensions.com™ today takes a look at how the UK Pension Lifetime Allowance (LTA) has decreased by 44.44% in the last four years from £1.8m in 2012 to £1m as of April 2016. In comparison, if the Life Time Allowance since 2006 had increased in line with the Retail Price Index (RPI), in 2016 the Life Time Allowance would be £2 million in the 2015/16 tax year.
Any lump sum payments taken from a Pension fund value above the Lifetime Allowance will be subject to a 55% tax charge, with any income taken being subject to 25% tax charge.
If you have applied for, or currently have Life Time Allowance protection or your current pension value is approaching the Life Time Allowance Limit (or will be in the coming years), there may be a significant number of advantages to looking at moving your UK Pension to a Recognised Overseas Pension Scheme (ROPS). Previously now as Qualifying Recognised Overseas Pension Scheme (QROPS) until 2015.
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