Pension Lifetime Allowance
UK tax glossary · Last reviewed: April 2026
The Pension Lifetime Allowance (LTA) — previously £1,073,100 — was abolished from 6 April 2024. There is no longer an overall cap on how much can accumulate in registered pension schemes tax-free over a lifetime.
In its place, there are two new allowances: the Lump Sum Allowance (£268,275) limits the total tax-free lump sum you can take in your lifetime; and the Lump Sum and Death Benefit Allowance (£1,073,100) limits certain lump sums paid on death.
Those who had LTA protections in place (Enhanced Protection, Fixed Protection 2016 or 2014, Individual Protection) retain their benefits under transitional rules and should take specialist advice before making new contributions or changes.
Common questions
Can I now pay as much as I want into a pension without a lifetime tax charge?
There is no longer an LTA charge. However, the Annual Allowance still limits how much you can contribute each year. Total pension savings can still grow without limit inside the fund, but only the first £268,275 (Lump Sum Allowance) is tax-free at drawdown.
What about my LTA protection — is it still valuable?
Existing Enhanced or Fixed Protection may still protect a higher tax-free lump sum above £268,275. However, further contributions may invalidate some protections. Seek specialist pension tax advice.
Related resources
TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.