RE: Multi bag? A pension Lifetime allowance penalty ?5 Nov 2020 08:45
Isn't the lifetime allowance only the limit you can physically put into a pension yourself? Once the money is in there, it is allowed to be invested and accrue profits from it's investments.
Therefore, you and your employer can put in up to Β£1m, but invested wisely any profits do not count to your LTA and are therefore tax/cgt free.
I have a SSAS and it can be used to buy bonds, shares etc but the profits don't count towards your LTA. In otherwords, any multibagging that
happens will lead to a very comfortable retirement :)