What’s better, a workplace pension or a Lifetime ISA?

For most people, a workplace pension where an employer offers a matching contribution is likely to be better. There are some ‘soft’ benefits of a Lifetime ISA (LISA), for example the availability of early access with penalties, but looking at the tax position, the options speak for themselves. LISA  Pension (BRT)   Pension(HRT)   Pension + Matching (BRT)  […]

2016-17 Allowances at a glance

  Income Tax Allowances Personal allowance   £11,000 Dividend allowance   £5,000 Savings rate band   £5,000 Personal savings allowance   £1,000 (£500 for higher rate tax payers, £0 for additional) Income tax bands and rates Effective rate Dividend rate Basic rate band £11,000 – £43,000 20% 7.5% Higher rate band I £43,000 – £150,000 40% 32.5% Loss of personal allowance […]

The pensions lifetime allowance should be a target, not a limit

The Lifetime Allowance (LTA) is the most tax efficient sum that can be accrued in a pension pot without further tax charges. For Money Purchase arrangements, and for lump sums from Final Salary Schemes it is simply the pound note value of benefits that are assessed, with Defined Benefits and other scheme pensions being assessed as 20x the pension payable.