CPI and Lifetime Allowance

arongunningham

Does anyone know what would happen to the Lifetime Allowance if CPI was a negative number?

Is there any rolling over if the LTA remains the same (e.g. if it was -1% one year, it would have to be at least +1% the next to get an increase)?

Thank you!

timblowers

Only if it's higher.

From the Finance Act:

"The standard lifetime allowance for any later tax year (“the subsequent tax year”) is the same as the standard lifetime allowance for the tax year immediately preceding the subsequent tax year, unless subsection (2C) provides for it to be higher.

http://www.legislation.gov.uk/ukpga/2016/24/section/19/enacted"

arongunningham

Perfect, thank you @timblowers