Tax relief rules should be split for DB and DC, AJ Bell says

The current way tax relief in both DC and DB pensions is controlled by annual and lifetime allowances (LTA) does not make sense, technical resources manager Gareth James said. For instance, he questioned whether you need an annual allowance when tax relief is already controlled at the £40,000 a year limit. Currently, the annual allowance is set at £40,000 each year - with a three-year carry forward provision - and the LTA at £1.25m over the lifetime of the pot. This is due to be drop to £1m in April. James said: "LTA in DC acts as a penalty on investment growth." According to AJ...