Reducing the annual and lifetime allowances for pension saving
This note examines the government's measures to restrict the availability of tax relief on pension saving by reducing the annual and lifetime allowances in recent years. As well as looking at the circumstances in which an annual allowance charge or lifetime allowance charge is triggered, the note highlights some key practical issues for trustees and employers. At the July 2015 Budget, the Chancellor announced the annual allowance will be tapered for high earners from the start of the 2016/17 tax year. We will update this note to reflect the forthcoming changes in due course. For more information, see Legal update, July 2015 Budget: key pensions announcements.