LTA increase confirmed

The standard lifetime allowance (LTA) will increase from £1m to £1,030,000 at the start of the 2018/19 tax year. This increase is in line with the rise in the consumer price index (CPI) of 3% for the 12 months to the end of September 2017. The LTA is set to rise in line with future CPI increases, with the figure to be confirmed each year in regulations. While most people aren’t affected by this, you should take action if the value of your retirement benefits is getting close to the threshold and we’d recommend you speak to an independent financial adviser (IFA).