Lifetime allowance ‘to be cut to £1m’

The chancellor is set to cut the lifetime allowance to £1m in tomorrow’s Budget, according to media reports.

The Sun today published a story under the headline ‘Osborne to make unexpected raid on high-earners’ pension pots in Budget’ that says the Treasury is planning a 20 per cent cut in the lifetime allowance to fund other tax giveaways.

Labour and the LibDems have previously called for a reduction in the lifetime allowance to £1m.