Pension lifetime allowance
Pension lifetime allowance
The lifetime allowance was the total amount that could be built up in your pensions, without paying a tax charge. But on 6 April 2023, this charge was removed.
Now, broadly speaking, the lifetime allowance just provides a cap on the maximum amount that can be taken tax-free from your pensions.
To find out how these changes could impact you, download our essential guide. It explains:
- What the lifetime allowance is currently and when it applies
- How to calculate how close you are to the limit
- Why you might decide to apply for lifetime allowance protection
- What the changes mean if you already hold lifetime allowance protection
- Examples of how to calculate your maximum tax-free amount
This guide isn’t personal advice. Pension and tax rules can change, and any benefits will depend on your circumstances. What you decide to do with your pension is an important decision, and if you’re unsure you should seek advice.
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Please correct the following errors before you continue:
This guide isn’t personal advice. Pension and tax rules can change, and any benefits will depend on your circumstances. What you decide to do with your pension is an important decision, and if you’re unsure you should seek advice.
What do the lifetime allowance changes mean for you?
The lifetime allowance was the total amount that could be built up in your pensions, without paying a tax charge. But on 6 April 2023, this charge was removed.
Now, broadly speaking, the lifetime allowance just provides a cap on the maximum amount that can be taken tax-free from your pensions.
To find out how these changes could impact you, download our essential guide. It explains:
- What the lifetime allowance is currently and when it applies
- How to calculate how close you are to the limit
- Why you might decide to apply for lifetime allowance protection
- What the changes mean if you already hold lifetime allowance protection
- Examples of how to calculate your maximum tax-free amount
This guide isn’t personal advice. Pension and tax rules can change, and any benefits will depend on your circumstances. What you decide to do with your pension is an important decision, and if you’re unsure you should seek advice.