Advisers see client backlash after lump sum tax scare

The Sunday Times recently quoted ex-pensions minister Steve Webb who said that the tax-free lump sum, accessible after aged 55, could be on the ‘brink of extinction'. He went on to say that given its cost of £4bn it would be easy to see that the Chancellor might get rid of it in the 2016 budget. The tax-free lump sum could be removed as part of wider changes to pension tax relief. The government is currently assessing whether to overhaul the current system.  A 'pension ISA' system or flat-rate relief between 22% and 33% are being considered. This speculation has caused a great d...