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  • see #3 "too rich to work"

    The lifetime allowance (which gives rise to this situation) is £1.1 million per person. I would respectfully suggest that at this level of accumulated liquid wealth you don't require further tax breaks.

  • As I understand it the LA was put in place to stop the private sector stuffing their personal pension contributions with things like bonus payments etc. to keep them tax free.

    If you are just signed up to a national pension scheme on nationally determined pay and conditions and fixed contributions you have no control over, it seems a bit perverse if a chunk of those salaries breach that cap.

  • it seems a bit perverse if a chunk of those salaries breach that cap

    The tax treatment of contributions in excess of the LTA is still strictly better than getting it paid as salary under the 45p rate. In the private sector you'd also get hit by tapering, meaning that it's almost impossible to accumulate a £1.1 mm pot under today's regime at £4k p.a. contribution.

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