Differences in the various pension protections available to savers against changes to the lifetime allowance (LTA) could leave almost a thousand investors worse off, AJ Bell said.
People with 'primary' protection against cuts to the LTA who do not have protection of their tax free lump sum could be £75,000 worse off than those with fixed protection, according to the SIPP provider. AJ Bell obtained the figures in a Freedom of Information (FOI) request from Her Majesty's Revenue and Customs (HMRC). The firm is now calling on HMRC to allow people with primary protection to apply for fixed protection, which the Revenue currently bars. At A-Day, people with pension funds already worth £1.5m could apply for primary protection from punitive tax charges on investmen...
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