2015 / 16
2016 / 17
Individual Lifetime Allowance (LTA)*
Annual Allowance
Money purchase annual allowance
Maximum Tax-Free Lump Sum
25% of pension benefit value
Lifetime allowance charge
55% if excess drawn as cash
25% if excess drawn as income
Annual allowance charge (on excess)
20% 45%

Tax relief available for personal contribution: higher of £3,600 (gross) or 100% of relevant earnings (capped at £40,000)

Any contributions in excess of £40,000 whether personal or by the employer, may be subject to income tax on the individual. The limit may be reduced by £10,000 once money purchase pensions are accessed.

Where the £40,000 limit is not fully used it may be possible to carry the unused amount forward for three years

Employers will obtain tax relief on employer contributions if they are paid and made 'wholly and exculsively'. Tax relief for large contributions may be spread over several year