Lib Dems seek £40,000 cap on tax-free pension lump sums

Also plan to scrap NI on contributions

James Phillips
clock • 2 min read

The Liberal Democrat party has passed a motion pledging to cap tax-free lump sums under pension freedom at £40,000 if elected into government.

Delegates at the party's annual autumn conference yesterday (18 September) approved plans to reduce tax advantages for higher earners, using the new revenue streams to provide perks for younger workers. Moved by the party's leader in the House of Lords, Lord Newby, the motion - Promoting a fairer distribution of wealth - aims to "combat inequality and raise revenues for public services and investments". It said: "Wealth inequality is economically and socially damaging, and is contributing to a growing intergenerational, geographical and class divide. It [the motion] calls for the tax ...

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James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

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