FoI reveals surge in Govt lifetime allowance tax take


Revenues from breaches of the lifetime allowance on pension contributions rose more than three-fold during the last Parliament, official figures reveal.

Figures published following a Freedom of Information request by Suffolk Life show HM Revenue & Customs took in £94.2m in tax as a result of contributions to pots in excess of the allowance in 2014/15.

The 2014/15 take was a slight reduction on the previous year’s high of £98m.

By contrast, the tax office took just £24.9m in 2009/10 (see table at bottom of article).

The figures come a month after Chancellor George Osborne confirmed plans to reduce the lifetime allowance to £1m as part of his July budget.

The lifetime allowance has been £1.25m since April 2014. It was previously £1.5m before being cut by the Coalition Government in the 2012 Autumn Statement.

At the start of the last Parliament the figure stood at £1.8m.

The Government has promised to link the allowance to inflation from 2018.

Tax Year Total
2009/10 £24,858,248
2010/11 £31,404,737
2011/12 £46,953,535
2012/13 £52,995,280
2013/14 £98,013,014
2014/15 £94,200,118