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 and Death Benefits Allowance
Jun 6, 2024, 15:23 PM
Title :
Lump Sum and Death Benefits Allowance
The Lump Sum and Death Benefits Allowance (LSDBA) is the cap on the tax-free lump sum that can be paid to, or in respect of, a member of a registered pension scheme. If the value of lump sum death benefits means that the LSDBA will be exceeded, the excess may be taxed at the marginal rate of income tax of the person receiving it.
The standard LSDBA is £1,073,100. If you have an LTA protection, you may have a higher allowance than set out above.