Inflation surge set to double LTA tax hit on pension savers

2021 measure to freeze LTA set to raise twice as much for HMT as originally thought

Jonathan Stapleton
clock • 2 min read
Rising inflation means the government's LTA freeze will have a much bigger impact than originally thought
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Rising inflation means the government's LTA freeze will have a much bigger impact than originally thought

A tax measure introduced in the 2021 Budget to reduce the cost of pension tax relief will raise twice as much for the Treasury as originally expected, analysis by Lane Clark & Peacock (LCP) reveals.

The consultancy said pension tax relief is currently limited by the lifetime allowance (LTA), which means that when pensions worth more than the LTA are accessed a special tax charge is levied on t...

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