Some 10,000 people will be hit by the Inland Revenue's proposed £1.4m lifetime limit when the new pension simplification legislation comes into force, according to the National Audit Office.
This is twice as many people as previously suggested by the government, which said 5,000 people were likely to be affected by the limit. The announcment by the NAO follows chancellor Gordon Brown's decision in December last year to let the Office examine whether the government's estimates were right or not. While the result of this review might have doubled the number of people who are going to be affected by the limit, the 10,000 figure still seems to be within the government's forecast. The NAO says: "The estimate of 5,000 people is at the lower end of a range of reasonable estim...
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