Applications for lifetime allowance protection 'slowing to a trickle'

4,000 people registered in the last year

clock • 2 min read

A freedom of information request submitted by LCP revealed that new applicants for lifetime allowance (LTA) protection have trickled down to 4,000 in the last year.

The firm said the lack of applicants was a concern after Chancellor Rishi Sunak announced a five-year freeze on LTA pension contributions over £1m earlier this year. The set of rules allow people to ‘protect' themselves against cuts in the LTA for pension tax relief, and even includes protection for individuals after they have died. LCP said some people may be "missing out" and could face "unnecessary" tax bills. Steve Webb, partner at LCP, said: "Limits on pension tax relief have been cut repeatedly in recent years and savers who planned on the basis of much higher limits can find...

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