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Recent poll puts personal allowance above LTA in 2018 changes?

Lifetime Allowance A recent poll conducted by FTAdviser states that almost two-thirds of advisers believe a rise in the personal allowance to £12,500 will have the most positive impact on clients.

This was the result when advisers were asked which of the four budget announcements will have the largest impact on their clients in a positive way.

We at Capital Wealth Partners find it surprising that only 21 per cent of advisers said the lifetime allowance (LTA) increase to £1.05m would be the most beneficial to their clients, with a whopping 64 per cent identifying the £650 increase in earning before their clients start paying tax in April 2019.

Only 15 per cent said the additional £5m in funding promised for the pensions dashboard over 2019 to 2020, and none said the extension to the Help to Buy scheme from 2021 to 2023 would have a positive impact on their clients which was announced by Chancellor Philip Hammond on October 29.

When we look at clients on an individual basis we believe the rise in LTA will be a more beneficial change for them but understand that on a whole the £650 increase in personal allowance could provide a larger impact. As we like to focus on our clients on an individual basis and what will provide them with the best service for their situation this is why we would put significantly more weight on the increased LTA.

To find out more about our LTA guide and services or our Lifetime Allowance Coaching please visit these pages.