Budget 2023 Pensions – Increase in annual allowance and abolition of lifetime allowance

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The maximum an individual can invest in pensions, whether personally or from employer or both, has been £40,000 per tax year for many years now. This cap is being increased to £60,000 per tax year from 6 April 2023.

In recent years there has also been a cap on total pension pot, currently at £1,007,000. People happily in the situation of having a pension pot of this value will be even happier today as the cap has been scrapped.

Both points are good news for tax planning via pensions, which we are very much in favour of.

Please contact us for further information on this subject or if you would like contact details of an ethically minded IFA to help guide your investment decisions.