The abolition of the lifetime allowance (LTA) could ‘remove a burden’ for HM Revenue & Customs (HMRC), will have ‘knock-on’ consequences and may see some “rowing back” as the structure is dismantled, pension lawyers say.
Arc Pensions Law managing partner Rosalind Connor explained that while the chancellor announced the abolition of the LTA in his budget, in practice he was getting rid of any LTA charges - the tax from exceeding the LTA - from 6 April, but taking longer to work out what to do with the "complex framework" of the LTA. She said this could lead to "some rowing back in the future as the structure is dismantled". Labour this morning (16 March) said it would reverse the move and keep the LTA in place. Connor also questioned the reason given by government for abolishing the LTA - that it woul...
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