Commenting on HMRC revised figures, our head of pensions and savings warns that more people could face unexpected charges.
Commenting on revised annual and lifetime allowance figures published by HMRC this morning, Becky O’Connor, Head of Pensions and Savings, interactive investor, said: “The government figures show clear rises in the number of people contributing more than the annual allowance and also the total value of Lifetime Allowance charges in recent years.
“Charges for exceeding allowances are proving an effective revenue raiser for the government, but a major headache for those who find they have to pay them.
“The freezing of the Lifetime Allowance, to many, might seem a niche concern of wealthy people. But the likelihood is that as with house prices and inheritance tax, the value of pension investments will increasingly drag people who might never have expected to be affected into this liability over the coming years.”
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