Blog: Lifetime allowance cut is a tax grab with both hands

Lifetime allowance cut is a tax grab with both hands

clock

Rachel Vahey is fed up. Here she explains why the lifetime allowance cut is a plain and simple tax grab

I remember the days - way before pension freedom was even a glint in George Osborne's eye - when sat around the table with Treasury staff, pleading with them for more flexibility for annuities, we were always rebuffed with the same argument. "The government allows very good tax relief on pensions. But the deal is people have to secure an income for life with the pot. That way they never fall back on the state and become a problem," the Treasury said. Of course, pension freedoms have blown all of this out of the water. Now - or at least in three weeks' time - you can do anything you...

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 Pensions

Transfer changes 'a start, not the finish line', pensions industry says

Transfer changes 'a start, not the finish line', pensions industry says

Clear and practical guidance ‘essential’ to apply the new framework consistently and with confidence

Jonathan Stapleton
clock 23 July 2026 • 4 min read
Financial Vulnerability Taskforce calls on advisers to rethink retirement planning

Financial Vulnerability Taskforce calls on advisers to rethink retirement planning

Publishes guide suggesting to ‘move beyond a pensions-only approach’

Sophia Panayi
clock 22 July 2026 • 2 min read
What might be in store for pensions under a Burnham premiership?

What might be in store for pensions under a Burnham premiership?

'My first hope for pensions under Burnham is stability and medium-term planning'

Andrew Tully
clock 20 July 2026 • 4 min read