Lifetime allowance and the lifetime allowance charge

By Tolley
Employment_tax_img6

The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Lifetime allowance and the lifetime allowance charge
  • Introduction
  • The lifetime allowance from 6 April 2011
  • The lifetime allowance from 6 April 2014
  • The lifetime allowance from 6 April 2016 and online services
  • Lifetime allowance look-up service
  • Interaction with automatic enrolment
  • Retirement age and its impact on the lifetime allowance
  • Testing against the lifetime allowance
  • The lifetime allowance charge

Introduction

A lifetime limit on the total amount of pension value that could benefit from tax relief was introduced with effect from 6 April 2006.

The amount of the lifetime allowance has changed frequently:

Tax YearAmount
2019/20£1,055,000
2018/19£1,030,000
2016/17–2017/18£1,000,000
2014/15–2015/16£1,250,000
2013/14£1,500,000
2012/13£1,500,000
2010/11–2011/12£1,800,000
2009/10

More on Pension contributions: