Govt sees 1000% tax increase from lifetime allowance since inception

LTA currently £1.03m

Hannah Godfrey
clock • 2 min read

The annual amount of tax collected from people exceeding the lifetime allowance has jumped 1,000% since its introduction just over a decade ago, a freedom of information request by Retirement Advantage has revealed.

Since the limit's introduction in the 2006/07 tax year, the taxman collected less than £10m from the lifetime allowance (LTA). This figure has since increased to £110m by 2016/17, however. Most of the increase has taken place since 2012, when the government began cutting the LTA -  it collected just £20m that tax year. Since then the government's tax intake from the limit has shot up while the LTA itself has nearly halved, falling from a peak of £1.8m to £1m. Although it recently edged up along with inflation to £1.03m on 6 April 2018. Retirement Advantage suggested the number of peop...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Advisers warn market volatility will threaten retirement plans

Advisers warn market volatility will threaten retirement plans

More than half expect clients to postpone or change plans

Isabel Baxter
clock 26 March 2024 • 2 min read
Perfect timing: How to advise clients on the right time to retire

Perfect timing: How to advise clients on the right time to retire

Striking a balance between health, wealth and personality

Richard Hulbert
clock 05 February 2024 • 4 min read
Baillie Gifford: Enjoying later life without an income from work

Baillie Gifford: Enjoying later life without an income from work

The latest from PA’ Digital Working Lunch webinar series

Professional Adviser
clock 12 December 2023 • 2 min read