Pension tax limits
The money you pay into your pension arrangements usually gets tax relief. However, there are limits on how much you can save towards your pension before tax will be charged on any excess.
Select from the options below to find out more.
Lifetime Allowance
Historically, the Lifetime Allowance (LTA) was the maximum amount you could build up in all of your registered pension savings throughout your working life before you had to pay additional tax.
The LTA for most people in the tax year 2023/24 was £1,073,100
In previous years a lifetime allowance charge would have been payable on any pension savings over this amount, but from April 2023 that charge was removed.
The LTA was abolished from 6 April 2024.
With the abolition of the LTA there is no limit on the amount of pension savings you can build up. However, new lump sum limits or allowances have been introduced.
This includes the Lump Sum Allowance (LSA) which for most people limits the tax-free cash or lump sum you can receive from all your pensions to £268,275 (the amount being the same as 25% of the LTA at abolition)
If you have an LTA protection, you may have a higher allowance than set out above.
For further details please see the other allowance details below or visit gov.uk