Pension warning as Britons at risk of being hit with 55 percent ‘stealth tax’ | Personal Finance | Finance

The allowance reached its lowest historical level at just £1million in 2016/17, with modest increases coming in the following years to bring it to the current rate of £1,073,100.

It was announced by the Chancellor of the Exchequer, Rishi Sunak last year that the lifetime allowance will stay frozen at this level until at least April 2026, which means no change will have been made to the limit for six tax periods.

This has led to concerns that more and more Britons will begin to fall foul of the limit as wages increase over time.

The freezing of the lifetime allowance has therefore been dubbed a “stealth tax” by some.