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.
Lump Sum Allowance
The Lump Sum Allowance (LSA) is a cap on the amount of tax-free lump sum you can receive from all your registered pension arrangements.
The standard LSA is £268,275. If you have an LTA protection, you may have a higher allowance than set out above.
If the only pension arrangement you are a member of is the ENW pension scheme, you only need to consider whether the total tax-free lump sum you want to take from the ENW pension scheme is more than your available LSA.
If you have previously taken pension benefits from either the ENW pension scheme or another scheme, it will be taken into account and will reduce the available LSA for future retirements.
Depending on the rules of the Scheme you may be able to take a lump sum in excess of the available LSA. This excess amount is called a Pension Commencement Excess Lump Sum (PCELS) and is liable for tax at your marginal rate. Alternatively, if the Scheme rules allow, the excess may be converted to additional annual pension.