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
From 6 April 2024 the Lifetime Allowance was abolished and replaced with two new allowances, a Lump Sum Allowance and a Lump Sum and Death Benefits Allowance: The new allowances set out above may have a higher value if someone has Lifetime Allowance (LTA) protection such as Fixed Protections or Individual Protections. It will be possible […]
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.