Pensions Lifetime Allowance Tax – Is It Being Scrapped?”
Q. As a Consultant who has had to opt out of the NHS Pension Scheme in my mid 50s, I hear rumours that this tax may be scrapped.
Is there any sign of this?
A. No, we don’t see any sign that this tax will be scrapped.
In fact, HMRC are collecting record amounts of this tax – £20m in 2014/15 to £36m in 2015/16.
However, it has recently been announced that the £1m limit currently will rise by 3% in April. So we can hope to see an LTA of £1,030,000 then.
This is the first increase in LTA allowances since it was reduced to £1m!