There are limits on the pension savings that you can make before you become subject to a tax charge. A pension savings tax charge is over and above any tax that may be due under the PAYE system.
Annual Allowance
This is the amount (£60,000 for 2024/25) by which your pension savings can increase in any one year before you have to pay a tax charge.
Lump Sum Allowances
The information below may be subject to change as the Regulations bringing in these changes only received Royal Assent on 22 February 2024. HMRC has indicated that there will be changes on various areas. Unfortunately this means that there remains some uncertainty about certain aspects of the new regime. From 6 April 2024 two new allowances were […]
Lifetime Allowance up to 6 April 2024
This is the total, tax-privileged capital value (£1,073,100 for 2023/24) of all your pension arrangements that you can build up during your lifetime.