Pensions - Articles - Lifetime Allowance looks less likely to return

 It was initially scrapped and replaced by three new allowances that target the tax-free element of pensions including a new tax-free cash cap of £268,275. A reinstatement was seemingly firmly in the sights of pre-election Labour before an apparent change of heart.

 Now the new government is in place it seems less likely, but not certain, that the abolition of the LTA is here to stay after HMRC confirmed work to complete the abolition and tidy up the legislation is ongoing.

 “Prior to last year's Budget, the allowance stood at just over £1m which sounds like a huge sum but in reality this was a figure that a growing number of people were reaching and which penalised people, particularly in the public sector, for diligent saving over many years. Ultimately, savers will be glad of clarity – it’s important that people retain confidence in the savings system and approach retirement planning with clarity.”