Pensions: Tax Allowances
(asked on 9th March 2018) - View Source
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how much was paid out in Lifetime Allowance charges in each year between 2010-2011 to 2017-2018; and what estimate he has made of the amount to be paid in (a) 2018-19, (b) 2019-2020 and (c) 2010-21.
Individuals whose pension savings exceed the Lifetime Allowance (LTA) are generally liable for tax when payments are made from their pension scheme.
Tax paid on LTA charges for 2010/11 to 2017/18 (year to date)
Tax Year | Total tax paid (rounded to the nearest £10m |
2010/11 | £10 million |
2011/12 | £20 million |
2012/13 | £20 million |
2013/14 | £40 million |
2014/15 | £40 million |
2015/16 | £80 million |
2016/17 | £110 million |
2017/18 | £120 million[1] |
Numbers provided for tax collected may be subject to significant change over time as in some cases pension providers can claim back tax paid. For example, this can occur where an individual has protections above the current Lifetime Allowance, or where not all of the payment would have been subject to the Lifetime Allowance.
HMRC does not have estimates for future payments of LTA charges for 2018-19, 2019-20 or 2020-21. Any tax received from LTA charges forms a part of the overall Income Tax forecast.
[1] Please note the 2017/18 tax year runs until April 2018, and so further tax charges could come through for this year which are not reflected in the above tables. The number provided represents a year-to-date figure.