Tax take from LTA breaches quadruples under Osborne

On 6 April 2016 the pension lifetime allowance (LTA) will reduce from £1.25m to £1m, a cut made by Osborne in the pre-election Budget in March. This will mean more people will be subject to the 55% tax charged on withdrawals of any pension savings in excess of the allowance. Budget documents said: "Over 96% of individuals currently approaching retirement have a pension pot worth less than £1m, so this change will affect only the wealthiest pension savers." A 30-year-old would need a pension pot of £360,000 to be on track to breach the lifetime allowance by the age of 65, according ...