LTA abolition: Advisers with NHS pension clients share views

The surprise move from the chancellor yesterday has been warmly welcomed

clock • 2 min read

Financial advisers today (16 March) said the increase to the annual tax-free pension allowance as well as the abolition of the life time allowance (LTA) will finally allow senior NHS staff to work for longer.

The government said yesterday the maximum tax-free annual contribution to a pension will be increased from £40,000 to £60,000. The LTA rules put a cap on the amount which can be saved into a pension and is currently £1,073,100. Anything over this amount is taxed at much higher rate, currently 55% for lump sum withdrawals. This cap will be abolished from April 2024, with charge abolished from April 2023. Quilter NHS pensions specialist Graham Crossley said: "Senior health workers will be very happy that both the annual allowance has been increased and the LTA has been abolished." Th...

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