lifetime allowance

lifetime allowance
Introduced by the Finance Act 2004, the total amount of pension savings within a registered pension scheme that receive favourable tax treatment with effect from 6 April 2006. For the tax year 2007/2008 the standard lifetime allowance is set at £1.6 million. It will increase each year before it reaches £1.8 million in the tax year 2010/2011, and will be reviewed regularly from then on. The lifetime allowance is personal to each member. There is transitional protection available for members with pension rights that accrued before 6 April 2006, in the form of primary protection and enhanced protection. To obtain protection, members must register with HM Revenue & Customs (HMRC).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • List of Statutory Instruments of the United Kingdom, 2006 — This is an incomplete list of Statutory Instruments of the United Kingdom in 2006. NOTOC 1 100* Public Contracts Regulations 2006 S.I. 2006/5 * Utilities Contracts Regulations 2006 S.I. 2006/6 * M6 Motorway (Junction 36, Town Head Bridge Parapet… …   Wikipedia

  • Pension simplification — In 2004 the Labour government announced plans to rationalise the British tax system as applied to pension schemes; these changes are referred to as pension simplification. The new single tax regime were adopted on 6th April 2006; this date is… …   Wikipedia

  • primary protection — Introduced by the Finance Act 2004, one of the forms of transitional protection that is available for members of registered pension schemes who accrued pension rights before 6 April 2006. A member whose rights are valued at more than £1.5 million …   Law dictionary

  • Capital gains tax — A capital gains tax (abbreviated: CGT) is a tax charged on capital gains, the profit realized on the sale of a non inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds,… …   Wikipedia

  • enhanced protection — Introduced by the Finance Act 2004, one of the forms of transitional protection available for members of registered pension schemes who accrued pension rights before 6 April 2006. A member may register with HM Revenue & Customs (HMRC) for… …   Law dictionary

  • defined benefits lump sum death benefit — Introduced by the Finance Act 2004, a registered pension scheme that is a defined benefit scheme may pay a defined benefits lump sum death benefit on a member s death. The scheme administrator must test the payment against the member s lifetime… …   Law dictionary

  • pension commencement lump sum — Introduced by the Finance Act 2004, a member of a registered pension scheme may commute part of his pension benefits for a pension commencement lump sum. This may comprise up to 25% of the capital value of the member s pension entitlement, and is …   Law dictionary

  • serious ill-health lump sum — Introduced by the Finance Act 2004, a member of a registered pension scheme may commute the entirety of his pension benefits for a serious ill health lump sum, provided that a registered medical practitioner has certified that the member has less …   Law dictionary

  • trivial commutation lump sum — Introduced by the Finance Act 2004, a member of a registered pension scheme whose total pension rights from all registered pension schemes do not exceed 1% of the standard lifetime allowance may commute these rights for a trivial commutation lump …   Law dictionary

  • winding-up lump sum — Introduced by the Finance Act 2004, a member of a registered pension scheme that is winding up may have his or her benefits commuted for a winding up lump sum. The amount of the lump sum must not exceed 1% of the standard lifetime allowance when… …   Law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”