George Osborne delivered his 2015 Budget speech on 18 March. Like previous Budget speeches, more tweaks were made to pensions and in particular, to pension tax allowances. Some of the changes could impact on senior local authority staff, who may find themselves liable to pay tax under the new rules.
Individuals' pension savings above the lifetime allowance (LTA) at the point they are drawn are subject to significant additional tax charges. With effect from 6 April 2016, the LTA will reduce again, this time from £1.25m to £1m. This will be the third cut since April 2012.