Ricky Chan, director at IFS Wealth & Pensions, added: "I don’t think the government would directly tinker with the tax-free lump sum, though they could do so in a stealthy way, such as reducing the Lifetime Allowance as they have done before, which is currently £1m.
"[This] would then reduce the tax-free lump sum because the maximum tax-free lump sum payable for most people is 25 per cent of this £1mn allowance, i.e. £250,000."
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