Lifetime allowance

Your lifetime allowance is the total amount of all your pension savings (apart from your State Pension) that can be built up over your entire working life without triggering an extra tax charge. At the moment, the standard lifetime allowance is £1,073,100.

Some people may have registered for protection with HMRC in the past, but otherwise, if you think you might go over this limit you should take regulated financial advice.

Please note that as part of the Spring 2023 budget, the government announced that from 6 April 2023, the tax charge if you go over the lifetime allowance (known as the lifetime allowance charge), will no longer apply. The government has also stated that they intend to change the law and abolish the lifetime allowance altogether from 6 April 2024.