Budget 2018: lifetime allowance for pensions rises

Despite widespread rumours in the run-up to the Budget that pensions tax relief for higher rate taxpayers would be cut, the Chancellor only tweaked pensions allowances

The lifetime allowance for pension savings will increase in line with CPI for 2019-20, rising to £1,055,000.

The band of savings income that is subject to the 0% starting rate has been frozen at its current level of £5,000 for 2019-20.

The adult ISA annual subscription limit for 2019-20 will remain unchanged at £20,000. The annual subscription limit for Junior ISAs for 2019-20 will be uprated in line with CPI to £4,368.  

As the first Child Trust Funds approach maturity, the government confirmed it would publish a consultation in 2019 on draft regulations for maturing Child Trust Fund accounts. The annual subscription limit for Child Trust Funds for 2019-20 will be uprated in line with CPI to £4,368.

Report by Sara White

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