Yes reduction of LTA is another aspect of Tory stealth tax, and one would argue that anyone would be pretty lucky to be within shouting distance of it. The LTA is currently fixed but if it changes it only go up by a factor equal to, or more likely, less than CPI. Now the case about not being something something one would necessarily worry about...using the compound interest calculator website below to give a crude guideline: say if you are 55 an have accumulated say 350k in a SIPP in a Vanguard Global equity index tracker that averages 9%/y over a 10 year period (easily done), and you put in 8k a year at 40% tax rate (= 11k), then you will be heading for a total of 1.2m which could be close to the LTA at your normal retirement age (assuming future Chancellors restrict the rise of the LTA, like current, to pay down the deficit). Now as you get older you might find you can allocate more funds to your SIPP or ISA, so then you will need to exercise clarity how much you put into your SIPP rather than an ISA.Though tax efficient planning is made more difficult by the LTA threshold regularly changing. From £1.8m in 2011/12 down to £1m five years later.
Unless we have a decade of astronomical returns it's not something I personally have to worry about ;-)
