LTA freeze: Rishi Sunak sends 'wrong message' to pension savers

'Under the radar revenue raiser'

Jenna Brown
clock • 6 min read

Rishi Sunak’s decision to freeze the lifetime allowance (LTA) for pension contributions has been widely criticised by pensions experts who say the move sends the “wrong message” to savers.

Sunak confirmed the decision to freeze the LTA, along with capital gains tax, inheritance tax and income tax brackets, in today's Budget speech. The LTA will remain at its current level of £1,073,100 for 2020/21 rather than increasing in line with inflation. It had been expected to rise by £5,800 in 2021/22, in line with 0.5% Consumer Prices Index.  In a widely predicted move - it was leaked last week - the freeze is estimated to raise an extra £990m in revenue by tax year 2025/26. Canada Life technical director Andrew Tully said: "This measure simply sends the wrong signal to save...

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