Is the pension Lifetime Allowance still in force?

No. The LTA charge was abolished from April 2024. There is no longer a 25% or 55% charge on pension pots exceeding £1,073,100.

What replaced the LTA?

Two new allowances: the Lump Sum Allowance (£268,275) limits tax-free cash; the Lump Sum Death Benefit Allowance (£1,073,100) limits tax-free lump sum death benefits.

Are large pension pots still worth building?

Yes, more so than before. Without the LTA charge, pension pots of any size can grow tax-free. The only restriction is the annual allowance on contributions.

UK Pension Lifetime Allowance Abolition Impact Calculator

Assess impact of LTA abolition (April 2024). Replaced by Lump Sum Allowance (£268,275) and Lump Sum Death Benefit Allowance (£1,073,100). No LTA charge on excess crystallisations.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Assess impact of LTA abolition (April 2024). Replaced by Lump Sum Allowance (£268,275) and Lump Sum Death Benefit Allowance (£1,073,100). No LTA charge on excess crystallisations. Use the uk lta abolition impact result to inform your calculation.

Related Calculators

UK Pension Allowance

Finance

UK Pension Tax-Free Lump Sum

Finance & Accounting

UK Inheritance Tax