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sorry what are you on about?5754089, member: 271533"]
Oh dear. True but do get more info before you post.
Then, in another change of direction, in his first Budget of March 2023, Mr Hunt announced that from April 2023 the charge on pensions worth more than the lifetime allowance would be set to zero, and that from April 2024 the allowance would be abolished.
Should the pensions lifetime allowance be reintroduced and, if so, how? | Institute for Fiscal Studies
Budget 2023 abolished the lifetime limit on tax-privileged pension savings. Labour has committed to reintroducing it. Would that be a good idea?ifs.org.uk
Would be good for you to read the entire history in the link.
Your articles supports my argument:
The number of people paying the charge varied correspondingly over this period, rising from under 1,000 a year in the late 2000s to over 11,000 in 2021–22. But that is not a good measure of the number of people affected by the lifetime allowance (and its abolition), since a large part of its effect will have been to discourage people from exceeding that level. In the extreme case, if everybody chose to stay below the lifetime allowance in order to avoid the charge, nobody would have paid the charge but that would not mean it had no effect: quite the opposite. It is difficult to know how many people would have saved more than the lifetime allowance in a pension in the absence of the charge.
and then it goes on to say..
In 2021–22 £500 million was paid in lifetime allowance charges, implying an average charge of just over £40,000 each for the 11,000 individuals that paid it. The upfront cost of abolition is higher than that, as some people will save more in a pension in response to the reform and will therefore get more upfront tax relief. The Office for Budget Responsibility costed the abolition of the lifetime allowance (combined with the introduction of the new cap on tax-free withdrawals) as an £800 million a year tax cut. But some of this upfront give-away will be recouped later, as the people saving more in a pension in response to the reform will pay more tax on their pension income in future.
