Changes to the Lifetime Allowance

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The lifetime allowance reduced from £1.25 million to £1 million in 2016. The Government introduced two protections called Fixed Protection 2016 and Individual Protection 2016. These protections are the same in design as Fixed and Individual Protections 2014 which were introduced when the lifetime allowance reduced in 2014.

The Government has announced that no-one will pay a lifetime allowance tax charge from 6 April 2023. The lifetime allowance will be abolished completely from 6 April 2024