The lifetime allowance has changed

On 15 March 2023, the Chancellor of the Exchequer announced changes to the lifetime allowance to support workforce retention.

The lifetime allowance charge was removed from 6 April 2023 and abolished in April 2024.

If you retire on or after 6 April 2023 there will be no lifetime allowance charge on the pension benefits paid to you. The maximum retirement lump sum, known as the pension commencement lump sum, you will be able to take tax-free is £268,275, unless you have lifetime allowance protection from HMRC.

Further information can be found on the factsheets below: