The Lifetime Allowance (LTA) was introduced as part of ‘pension simplification’ in 2006.
On 6 April 2006, known as A-day, broad changes were made to pension regulations, aligning the pension system under one set of tax rules, introducing the Annual Allowance, and the LTA.
The LTA sets a limit on the value of pension benefits you can draw in your lifetime without triggering an additional tax charge. Since its introduction, the LTA amount has changed many times, and this has led to the introduction of HMRC protections.
What are these protections, and ...