Raising LTA to boost early retirement is not the only UK pension tax relief snag

Reports have emerged that the UK chancellor Jeremy Hunt could increase in the Budget the amount people can save into their pensions tax-free in order to encourage over-50s to get back to work. Currently if the value of a pension pot exceeds the lifetime allowance of £1.073m then the saver can face excess tax penalties of up to 55% on access. However Gary Smith, director of financial planning at wealth manager Evelyn Partners, says that such a move would be very welcome, but that encouraging early retirees back into the workforce faces other tax disincentives. "The problem for early...