The Lifetime Allowance

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The Government has recently announced that no-one will pay a lifetime allowance tax charge from 6 April 2023. If a tax charge arose before this date, it is still payable. The lifetime allowance will be abolished completely from 6 April 2024.

Before 6 April 2023, if the value of your pension benefits when you took them was more than the lifetime allowance, or more than any protections you held, you had to pay tax on the excess benefits. This did not include any state pension, state pension credit or any partner’s or dependant’s pension you are entitled to..

The lifetime allowance covered any pension benefits you had in all tax-registered pension arrangements – not just the LGPS.


The Lifetime Allowance from 2011

Tax Year Lifetime Allowance
2011/12 £1.8 million
2012/13 £1.5 million
2013/14 £1.5 million
2014/15 £1.25 million
2015/16 £1.25 million
2016/17 £1 million
2017/18 £1 million
2018/19 £1.03 million
2019/20 £1,055,000
2020/21 to 2023/24 £1,073,100
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