LTA tax take hits £382m in 2020/21, latest HMRC stats show

'Draconian' LTA 'should be scrapped' for DC pension savers

clock • 4 min read

The government netted £382m in tax charges from the pensions lifetime allowance (LTA) in 2020/21, latest statistics from HM Revenue & Customs (HMRC) reveal.

A total of £382m was paid in charges by 8,610 people whose drawings on their pensions exceeded the LTA limit, representing an 11% increase in tax take compared to the preceding year, according to analysis of the figures by consultancy Lane Clark & Peacock (LCP). It said the decision by the government to freeze the LTA at £1.0731m for five years until 2025/26  will become increasingly more significant for savers unless further action is taken.  LCP partner Karen Goldschmidt said: "Even when LTA limits keep pace with inflation, we see a steady increase in the number of people being caug...

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