Thousands of pension savers potentially face tax charges as they have more than the lifetime allowance sitting in their personal pensions, figures obtained from HM Revenue and Customs (HMRC) following a freedom of information (FOI) request by InvestingReviews.co.uk indicate.
Around 2,300 people have been paying into personal pension schemes exceeding the lifetime allowance of £1,073,100, according to HMRC data. The figures also show that around 100 people have been actively contributing into funds worth £4 million-plus.
The data covers the tax year ending April, 2020 and specifically includes active contributions being made into certain pensions during that tax year, so the figures may not be fully complete.
