A freedom of information request submitted by LCP revealed that new applicants for lifetime allowance (LTA) protection have trickled down to 4,000 in the last year.
The firm said the lack of applicants was a concern after Chancellor Rishi Sunak announced a five-year freeze on LTA pension contributions over £1m earlier this year. The set of rules allow people to ‘protect' themselves against cuts in the LTA for pension tax relief, and even includes protection for individuals after they have died. LCP said some people may be "missing out" and could face "unnecessary" tax bills. Steve Webb, partner at LCP, said: "Limits on pension tax relief have been cut repeatedly in recent years and savers who planned on the basis of much higher limits can find...
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