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...

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