Lifetime Allowance 2018/2019
In our blog dated 25th July 2017 we wrote that from 6th April 2018 the Lifetime Allowance will be increased in line with the previous September’s Consumer Price Index (CPI), and where this is not a multiple of £100 it will be rounded up to the next £100.
On the 17th October 2017 The Office of National Statistics has announced that the CPI for the September 2017 is a 5 year high of 3%.
With this announcement it would seem that the Lifetime Allowance for 2018-2019 will be £1,030,000
Based on the forecast table from Office of Budget Responsibility, the LTA for future years could increase thereafter to the following;
| Tax Year | 2017-2018 | 2018-2019 | 2019-2020 | 2020-2021 | 2021-2022 | 2022-2023 |
|---|---|---|---|---|---|---|
| CPI | N/A | 3.00% | 2.30% | 2.00% | 2.00% | 2.00% |
| LTA Prediction | £1,000,000 | £1,030,000 | £1,053,700 | £1,074,800 | £1,096,300 | £1,118,300 |
http://budgetresponsibility.org.uk/faq/where-can-i-find-your-latest-forecasts/
2 Comments
CPI was 2.8%, Inflation was 3.0%
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We note that CPI did increase to 3% in September 2017 from 2.9% in August 2017. It was the CPIH which was 2.8% for September.