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.


Answered by
John Glen Portrait
John Glen
Shadow Paymaster General
This question was answered on 19th March 2018

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.

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