HM Revenue & Customs allowances

HMRC limits apply to all benefits:

The Lifetime Allowance

The Lifetime Allowance (LTA) is the maximum amount of all the pension saving you build up over your life that benefits from tax relief. If you build up pension savings worth more than the lifetime allowance you'll pay a tax charge on the excess.

The LTA is currently £1.073m and is expected to remain at this level until at least 5 April 2026.

The LTA will include not only the benefits in the Scheme, but also any benefits in the RSA Pension Scheme, any other occupational pension arrangements in which you have participated with previous employers, any personal or stakeholder pensions you may have, or any such arrangements that you may join in the future. However, it excludes State pension entitlements and pensions payable on your death.

It is the capital value of your pension which is measured against the LTA. In the case of a defined benefit scheme, such as the Scheme, the pension you have when you start drawing your pension is multiplied by 20 to measure its capital value against the LTA. Any pension already in payment before 6 April 2006 is multiplied by 25. The capital value of any defined benefit pension you have from previous employment plus the value of any pension accounts you have in personal, company or stakeholder schemes are added together and measured against the LTA.