Chancellor considering £100,000 lump sum limit – reports

Reducing cap on pension tax-free cash

The chancellor is considering a £100,000 cap on tax-free cash from pensions in her 30 October Autumn Budget speech, according to reports.

The Telegraph reported the cap was being considered as part of the government's economic plan in a bid to plug the £22bn public finance deficit. It said the lump-sum limit may be reduced by two thirds to £100,000 "after recommendations from think tanks". The Institute for Fiscal Studies recently recommended such a move. The change could affect well-paid public sector earners, however. Quilter NHS pension specialist Graham Crossley warned the government must "tread carefully". Think-tank IFS urges government to carry out 'serious' capital gains tax reform "A move like this could ...