Life insurance risks 'huge' pension tax bill

The protected cash, registered before A-Day, could be in breach of tax laws due to the way some employers treat life insurance, and investors should consider taking out their own policy. On 6 April 2006, the Government introduced the lifetime allowance (LTA), which set an upper limit on total pension contributions, after which they are heavily taxed. Any pension cash accrued before this date and in excess of the LTA could be protected, though the rules prevent these savers from making any additional pension contributions. However, David Smith, director of AWD Chase de Vere Consulting, ...