The number of pension savers who breached the lifetime and annual allowance limits on their retirement pots increased in 2018/19 with the government netting £609m in tax revenue, latest figures show.
Official figures from HM Revenue & Customs (HMRC) for 2018/19, the latest period released, showed 34,220 people reported chargeable pension saving above the annual allowance (AA), with total excess savings of £817m. According to analysis from pension consultant LCP, if it assumed a typical tax rate of 40% was applied, it would generate £326m for the taxman. LCP said 4,310 more people were caught out than the previous year - an increase of 14%. The average charge per member on this basis would have been just shy of £10,000 at £9,549, it added. It said AA changes particularly affected ...
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