Annual Allowance Factsheet 2024

Local Government Pension Scheme (LGPS) factsheet Pensions Taxation - Annual allowance
HM Revenue and Customs (H M R C) imposes two controls on the amount of pension savings you can make without having to pay extra tax. These controls are known as the annual allowance and lifetime allowance. This is in addition to any income tax you pay on your pension once it is being paid to you.

This factsheet looks at the annual allowance. The annual allowance is the amount by which the value of your pension benefits may increase in a year without you having to pay a tax charge.