Pension schemes rates
Updated 6 April 2024
© Crown copyright 2024
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/rates-and-allowances-pension-schemes/pension-schemes-rates
Standard individual lump sum allowance
| Tax year | Amount |
|---|---|
| 2024 to 2025 | £268,275 |
Standard individual lump sum and death benefit allowance
| Tax year | Amount |
|---|---|
| 2024 to 2025 | £1,073,100 |
Member contributions
There’s no limit on the amount that an individual can contribute to a registered pension scheme. If you’re a UK resident aged under 75 you may receive tax relief on your contributions to registered pension schemes.
Tax relief is limited to relief on contributions up to the higher of:
- 100% of your UK taxable earnings
- £3,600
Annual allowance
| Tax year | Amount |
|---|---|
| 2024 to 2025 | £60,000 |
| 2023 to 2024 | £60,000 |
| 2022 to 2023 | £40,000 |
| 2021 to 2022 | £40,000 |
| 2020 to 2021 | £40,000 |
| 2019 to 2020 | £40,000 |
| 2018 to 2019 | £40,000 |
| 2017 to 2018 | £40,000 |
| 2016 to 2017 | £40,000 |
| 2015 to 2016 | 6 April 2015 to 8 July 2015 — £80,000 9 July 2015 to 5 April 2016 — £0 |
| 2014 to 2015 | £40,000 |
| 2013 to 2014 | £50,000 |
| 2012 to 2013 | £50,000 |
| 2011 to 2012 | £50,000 |
From 6 April 2016 your annual allowance will be reduced if your adjusted income for the tax year is more than the adjusted income limit.
| Tax year | Threshold income limit | Adjusted income limit |
|---|---|---|
| 2024 to 2025 | £200,000 | £260,000 |
| 2023 to 2024 | £200,000 | £260,000 |
| 2022 to 2023 | £200,000 | £240,000 |
| 2021 to 2022 | £200,000 | £240,000 |
| 2020 to 2021 | £200,000 | £240,000 |
| 2019 to 2020 | £110,000 | £150,000 |
| 2018 to 2019 | £110,000 | £150,000 |
| 2017 to 2018 | £110,000 | £150,000 |
| 2016 to 2017 | £110,000 | £150,000 |
Minimum reduced (or tapered) annual allowance
| Tax year | Minimum tapered annual allowance |
|---|---|
| 2024 to 2025 | £10,000 |
| 2023 to 2024 | £10,000 |
| 2022 to 2023 | £4,000 |
| 2021 to 2022 | £4,000 |
| 2020 to 2021 | £4,000 |
| 2019 to 2020 | £10,000 |
| 2018 to 2019 | £10,000 |
| 2017 to 2018 | £10,000 |
| 2016 to 2017 | £10,000 |
Any amount of pension savings over the annual allowance will be liable to the annual allowance charge.
Money purchase annual allowance
This applies where the scheme member has flexibly accessed any of their pension benefits and was introduced on 6 April 2015.
| Tax year | Amount |
|---|---|
| 2024 to 2025 | £10,000 |
| 2023 to 2024 | £10,000 |
| 2022 to 2023 | £4,000 |
| 2021 to 2022 | £4,000 |
| 2020 to 2021 | £4,000 |
| 2019 to 2020 | £4,000 |
| 2018 to 2019 | £4,000 |
| 2017 to 2018 | £4,000 |
| 2016 to 2017 | £10,000 |
| 2015 to 2016 | 6 April 2015 to 8 July 2015 — £20,000 9 July 2015 to 5 April 2016 — £0 |
Alternative annual allowance
This applies to scheme members who have:
- pension savings in both defined benefits and defined contribution arrangements
- flexibly accessed their money purchase pension benefits and made money purchase pension savings in excess of the money purchase annual allowance
| Tax year | Amount |
|---|---|
| 2024 to 2025 | £50,000 (the annual allowance, less the money purchase annual allowance, if the member’s annual allowance is reduced) |
| 2023 to 2024 | £50,000 (the annual allowance, less the money purchase annual allowance, if the member’s annual allowance is reduced) |
| 2022 to 2023 | £36,000 (the annual allowance, less the money purchase annual allowance, if the member’s annual allowance is reduced) |
| 2021 to 2022 | £36,000 (the annual allowance, less the money purchase annual allowance, if the member’s annual allowance is reduced) |
| 2020 to 2021 | £36,000 (the annual allowance, less the money purchase annual allowance, if the member’s annual allowance is reduced) |
| 2019 to 2020 | £36,000 (the annual allowance, less the money purchase annual allowance, if the member’s annual allowance is reduced) |
| 2018 to 2019 | £36,000 (the annual allowance, less the money purchase annual allowance, if the member’s annual allowance is reduced) |
| 2017 to 2018 | £36,000 (the annual allowance, less the money purchase annual allowance, if the member’s annual allowance is reduced) |
| 2016 to 2017 | £30,000 (but this may be lower if the member’s annual allowance is reduced) |
| 2015 to 2016 | 6 April 2015 to 8 July 2015 — £60,000 9 July 2015 to 5 April 2016 — £0 |
Standard overseas transfer allowance
| Tax year | Amount |
|---|---|
| 2024 to 2025 | £1,073,100 |
Standard lifetime allowance
The standard lifetime allowance was abolished from 6 April 2024.
| Tax year | Amount |
|---|---|
| 2023 to 2024 | £1,073,100 |
| 2022 to 2023 | £1,073,100 |
| 2021 to 2022 | £1,073,100 |
| 2020 to 2021 | £1,073,100 |
| 2019 to 2020 | £1,055,000 |
| 2018 to 2019 | £1,030,000 |
| 2017 to 2018 | £1,000,000 |
| 2016 to 2017 | £1,000,000 |
| 2015 to 2016 | £1,250,000 |
| 2014 to 2015 | £1,250,000 |
| 2013 to 2014 | £1,500,000 |
| 2012 to 2013 | £1,500,000 |
| 2011 to 2012 | £1,800,000 |
If you hold a protected allowance that entitles you to a higher lump sum and higher lump sum death benefit allowance, there are some circumstances where you can lose it. If you lose your protected allowance, you should tell HMRC immediately.
Tax charges on payments from registered pension schemes
| Type of charge | Rates |
|---|---|
| Authorised Lump Sums | Lump sums are taxed at your marginal rate on anything above £268,275 |
| Annual allowance charge | Marginal rate of Income Tax |
| Unauthorised payments charge | 40% |
| Unauthorised payments surcharge | 15% |
| Overseas transfer charge | 25% |
| Short service refund lump sum charge | 20% on first £20,000 50% on amount over £20,000 |
| Special lump sum death benefits charge | 45% |
| Authorised surplus payments charge | 25% |
| Scheme sanction charge | 15% to 40% |