7 May 2019

Pension tax allowances

The Lifetime Allowance is a limit on the total pension savings you can build up in a tax-efficient way. It increases annually in line with changes in the Consumer Prices Index (CPI), so from April 2019 it has increased from £1.03m to £1.05m.

The Annual Allowance is a limit on the total amount of contributions that can be paid into a registered pension scheme and receive tax relief. It remains at £40,000 for the 2019/2020 tax year. The Money Purchase Annual Allowance, which applies to people who take money out of their pension pot in a flexible way, but who continue to pay contributions into a pension, is also unchanged at £4,000.