More caught by lifetime pension allowance
Many more people are being caught by the 'lifetime allowance' for pensions, says the Telegraph. It has been reduced in stages from £1.8 million to £1 million in recent years, and there is a tax charge of 55 per cent on any excess.
While £1 million sounds a lot, the Telegraph says that this is the notional value of a final salary pension of £50,000, which many long-serving employees at middle-ranking and senior levels will be entitled to. In addition to this, high earners may fall foul of the annual allowance and will need advice to deal with the complexities.