The Treasury's claim that the Inland Revenue's controversial £1.4m lifetime limit proposal only affects 5,000 individuals is to be tested by the National Audit Office, and the plan could be dropped altogether Chancellor Gordon Brown has told the House of Commons.
In his pre-budget report Brown today said the consultation on the Revenue's proposals had revealed a wide range of views on the numbers effected by the lifetime limit and hinted the proposal could be dropped. He said the date set for implementation would remain April 2005 if the lifetime limit is kept.
Brown said: “We are asking the National Audit Office for the numbers affected by the planned lifetime limit. If after that consultation the decision is to proceed the new regime will take effect from April 2005 – otherwise the current regime stays in place.”