Pension savers breaching the lifetime allowance (LTA) today are shelling out 10 times as much tax as they did in 2006 when the policy was first introduced. Here, Wealth at Work outlines three types of employee at risk of breaking the rules...
The latest figures found that some £110m in tax was collected from individuals exceeding the allowance in 2016/17, up from less than £10m in 2006. Wealth at Work, a provider of financial education and guidance in the workplace, said taxpayers breaching the LTA typically fell into one of three categories. ‘Blissfully unaware' In the first instance, the business said many employees may be "blissfully unaware" their pension pot is valued at or above the current LTA limit of £1.03m. It said this could particularly affect those who never check their pension value, or have not done so...
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