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.

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Frequently Asked Questions

Is the pension Lifetime Allowance still in force?

What replaced the LTA?

Are large pension pots still worth building?