Tax controls and your LGPS benefits

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In this section we look at the HM Revenue and Customs (HMRC) rules about pension savings. There are limits on:
 
  • the amount of pension savings you can make in a year, and
  • the lump sum you can take when you take your pension
 
before you have to pay extra tax. This is in addition to any income tax you pay on your pension when it is paid to you. Most people will be able to save as much as they wish because their pension savings and maximum lump sum are less than the limits.
 
There is no limit on the amount of pension contributions you can pay. You will not get tax relief on all your contributions if you pay more than your taxable pay into your pension in a tax year.
 
There is a limit on the amount of extra pension you can buy in the LGPS by paying additional pension contributions. The most you can currently buy is £8,344 of extra yearly pension.