HMRC reveals 79% rise in people breaching annual allowance limit

FOI request by Royal London

Julian Marr
clock • 2 min read

The number of people reporting they had breached the annual allowance limit for pension tax relief rose by almost four-fifths (79%) between 2012/13 and 2014/15 - the latest year for which such figures are available.

A Freedom of Information (FOI) request tabled by Royal London to HM Revenue & Customs (HMRC) revealed that in 2014/15, when the annual allowance was £40,000, some 7,000 people reported on their tax return they had saved more than the limit. This compares with 3,900 people in 2012/13 when the limit stood at £50,000. Royal London policy director Steve Webb (pictured) said: "Pension tax relief has been squeezed year after year, and these new figures reveal a big growth in the numbers paying a tax penalty for being over the annual allowance limit." He added: "With a big cut in annual allowan...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Keir Starmer's refusal to rule out wealth tax labelled 'telling'

Keir Starmer's refusal to rule out wealth tax labelled 'telling'

Continued speculation around how the Labour govt might raise revenue

Isabel Baxter
clock 11 July 2025 • 2 min read
Business owners' estates: When cash can be a problem

Business owners' estates: When cash can be a problem

A complex, often overlooked threat

Andrew Aldridge
clock 11 July 2025 • 4 min read
IHT/pensions shake-up threatens SME commercial property owners

IHT/pensions shake-up threatens SME commercial property owners

Evelyn Partners warns thousands of businesses are at greater risk

Jenna Brown
clock 07 July 2025 • 4 min read