The government is reportedly planning reductions to the pensions lifetime allowance to recoup costs in this Autumn’s Budget.
The Telegraph reports that “well-placed sources” have said that the Treasury is considering plans to change the way pension contributions are taxed, following a huge increase in public spending during the pandemic.
One proposal is to cut the pensions lifetime allowance (LTA) from £1,073,100 to £800,000 in the next Budget.In this year’s Spring Budget, the Chancellor pledged to freeze the current LTA rate at £1.073m until April 2026.However, changes to pension tax relief could allow the government to maintain the pensions triple lock. […]
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