Lifetime Allowance (LTA) is the limit on the amount of pension benefit(s) that you can take from all of your registered pension arrangements, before you incur a tax charge on the value of your pension above the LTA. These benefits include:
- lump sums; and
- retirement income.
The current standard Lifetime Allowance is £1,073,100.
We will calculate your LTA either when you retire, or at age 75 if earlier. We calculate this by:
- multiplying your annual pension payment by 20; and
- adding any lump sum entitlement.
Based on the current standard LTA, if you only have Civil Service pension benefits and they exceed the amounts listed in the table below you may incur a tax charge. If you have other pensions in addition to your Civil Service pension, you may exceed the LTA at lower amounts of Civil Service pension.