Pension allowance reform praised by industry but cost and impact of measures questioned
LTA abolished, AA rises to £60,000 and both MPAA and MTAA increased to £10,000
Some fear the government could alter inheritance tax rules or hike the minimum pensions age to 60
Reports say LTA could increase from £1m to £1.8m and the AA from £40,000 to £60,000
Daily Mail says lifetime and annual allowances among those that will increase
Steven Cameron calls for LTA, AA and MPAA reform as chancellor expected to rethink rules
Cyprian Njamma says the government’s changes to allowances could make it hard for savers to overcome complexities, thereby disincentivising saving for retirement.
Scottish health secretary Jeane Freeman has written to chancellor Sajid Javid demanding he find a solution for heavily-taxed senior NHS workers in his upcoming Budget.
The Office of Tax Simplification (OTS) has called on the government to review its “complicated” pension tax measures and simplify engagement with the system.
More than 4,500 pension scheme members breached the lifetime allowance in the 2017/18 tax year, an increase of 36% from the year before, according to HM Revenue and Customs (HMRC).