UK Pensions – Application For Protection Of Your Lifetime Allowance
If you are an expat with UK pension benefits who may be unlikely to return or you have significant existing UK pension provision, you may wish to take advantage of being able to freeze the current tax relief limit and save potentially thousands of pounds in eventual tax from pension pots in excess of the new lower limit.
Under current UK legislation, there is a maximum value of GBP1.5million in UK pensions against which you can claim tax relief.
This ceiling is due to be reduced from April 2014 to GBP1.25million. You can however elect to have the amount frozen at current levels in order to maximise any relief already granted.
If however, you subsequently restart payments into a UK scheme at a future date, the allowance will be reduced in line with what is currently available.
Please refer to the UK Inland Revenue website for more details to ensure you keep this potentially very valuable benefit.http://www.hmrc.gov.uk/pensionschemes/pension-savings-la.htm
Please contact us for further information and advice.