Pension Taxation: Lifetime Allowance
The Lifetime Allowance (LTA) is the total amount of pension that can be built up in a lifetime before you are charged extra tax. The LTA is £1,073,100.
The Lifetime Allowance does not include any State pension benefits that you have become entitled to or any pension resulting from the death of a partner/spouse.
The government announced in the March 2023 Spring Budget that the tax charge for exceeding the LTA will be removed with effect from 6th April 2023, and that it will abolish the lifetime allowance completely from 6th April 2024.
Until then, the Pension Fund is still obliged to continue to operate LTA checks so you may see references to this on some documentation until it is completely abolished. However, there is still a limit on the total amount of tax-free lump sums can be paid, which is £268,275.