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

The £22.40 question: Are clients in the dark on the full state pension?

The £22.40 question: Are clients in the dark on the full state pension?

'The political architecture is elegant, from the Treasury's perspective'

James Floyd
clock 01 May 2026 • 3 min read
Alltrust acquires Phoenix Wealth Family Suntrust schemes

Alltrust acquires Phoenix Wealth Family Suntrust schemes

Completion expected later this year

Jenna Brown
clock 29 April 2026 • 1 min read
Government proposes further concession on Pension Schemes Bill mandation

Government proposes further concession on Pension Schemes Bill mandation

Amendment covers pension schemes seeking an exemption

Holly Roach
clock 27 April 2026 • 2 min read