Ian Browne: Why the lifetime allowance should be £4.8m

A Freedom of Information request recently revealed that tax paid to the Exchequer by pension savers who have exceeded their Lifetime Allowance (LTA) has increased by 80 per cent. The LTA, which was only supposed to impact 5,000 wealthy people when it was first published in 2002, is now a tax on the retirement funds of thousands of ordinary people thanks to its reduction to £1m in April 2016. This means a growing number of taxpayers who have prepared for their retirement by saving up are now being penalised for their forward thinking by the tax system. This was never the intention of the ...