Pensions glossary of terms

Copyright © 2025 LexisNexis
Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Pensions glossary of terms

Copyright © 2025 LexisNexis
Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
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This guidance note provides an overview of the following terms:

  1. •

    Annual allowance

  2. •

    Automatic enrolment

  3. •

    Deferred member

  4. •

    Defined benefit arrangements

  5. •

    Flexi-access drawdown

  6. •

    Lifetime allowance

  7. •

    Lump sum allowance

  8. •

    Lump sum and death benefit allowance

  9. •

    Money purchase annual allowance

  10. •

    Money purchase arrangements

  11. •

    National Employment Savings Trust

  12. •

    Net payment arrangement

  13. •

    Occupational pension schemes

  14. •

    Pension commencement lump sum

  15. •

    Pension input amount

  16. •

    Pension input period

  17. •

    Personal pensions

  18. •

    Registered pension scheme

  19. •

    Regulated investment advice

  20. •

    Relevant UK earnings

  21. •

    Relief at source

  22. •

    Retirement annuity contract

  23. •

    Scheme administrator

  24. •

    Short service refund lump sum

  25. •

    Stakeholder pensions

  26. •

    Trivial commutation lump sum

  27. •

    Uncrystallised funds pension lump sums

This guidance note has been updated to reflect the changes announced in Spring Budget 2023.

Annual allowance

The annual allowance is the maximum amount which can be contributed (or deemed to be contributed) in a pension input period without the member incurring a tax charge.

The annual allowance for 2023/24 onwards is £60,000. The annual allowance from 2014/15 to 2022/23 was £40,000.

The annual allowance is tapered where the individual

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  • 27 May 2025 12:10

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