Pensions Tax Relief, draft Finance Bill 2011 clauses – LITRG comments

Published on 9 February 2011

When the proposals to reduce the lifetime allowance (‘LTA’) were first announced, we were concerned at the potential impact on those on low-incomes arising from a measure designed to limit the tax-advantaged pension saving rules for wealthier taxpayers.

In our submission on draft Finance Bill clauses, we therefore welcome the proposed decoupling of the trivial commutation limit from the LTA. However, our submission queries the proposal to fix the limit at £18,000, suggesting instead an increase to £21,500 coupled with annual inflationary increases. We also go on to address what we view as a further unnecessary restriction on trivial commutations – the 12 month commutation period.

PDF icon LITRG response can be found by using the link.


Contact: Kelly Sizer (please use form at