What is the Lifetime Allowance for my UK pension?
The UK’s Lifetime Allowance (LTA) is the total amount of savings you can take from all your UK workplace and/or personal pensions without facing a UK tax charge, which applies irrespective of the fact you are no longer a UK resident and/or taxpayer.
Since 5 April 2020, the standard Lifetime Allowance has been £1,073,100 and will remain frozen at its current level until April 2026.
The LTA is not a limit on the amount you can save in your UK pension, but when you are approaching the LTA you should consider what the UK tax treatment could be.
By taking early steps to manage your LTA, including obtaining financial advice where necessary, you can seek to mitigate the impacts of the tax charge on your pension savings.
In some circumstances, individuals have certain protections against the Lifetime Allowance, or have applied for a Lifetime Allowance greater than the standard Lifetime Allowance. If you have applied for protection in the past, you should have received a certificate to confirm the protection obtained.