Budget 2015: Lifetime allowance reduced to £1m; branded a 'cap on aspiration'

Chancellor George Osborne confirmed the cut in his final Budget before the general election.  He also announced that, from April 2018, the lifetime allowance (LTA) for pensions would be indexed to the Consumer Prices Index. Currently savings of up to £40,000 a year qualify for tax relief, but there is an upper limit of £1.25m over the lifetime of a pension pot, following which a tax charge of 55% applies. The limit has been cut several times since its introduction in 2006, falling from £1.5m in April last year, following a reduction from £1.8m in 2011. Turning to plans outlined ...