Many people with large pension pots need to act before next April to avoid tax charges, says the Financial Times.
People whose pension pots exceed the new £1.25 million ‘lifetime allowance’ will face a tax charge of 55%, but they can apply for ‘individual protection’ before next April to secure a higher allowance of up to £1.5 million. Confusingly, though, there is another option, fixed protection, and which of these forms of protection is most suitable will depend on personal circumstances, making it essential to obtain advice.