Personal Pension

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Personal Pensions

This data relates to Personal Pensions. If you require specific, company pension information you should seek advice.

Details	2020/21	2021/22	2022/23
Lifetime Allowance	£1,073,000	£1,073,000	£1,073,000
Annual Allowance	£40,000*	£40,000*	£40,000*
Annual Allowance Charge on Excess	20%-45%	20%-45%	20%-45%
Max. Relievable Personal Contributions, capped by the annual allowance and:	100% of relevant UK earnings or £3,600 if greater	100% of relevant UK earnings or £3,600 if greater	100% of relevant UK earnings or £3,600 if greater
Max. Pension Commencement Lump Sum	25% of pension benefit value	25% of pension benefit value	25% of pension benefit value
Lifetime Allowance Charge if excess drawn:	as lump sum: 55% as pension: 25%	as lump sum: 55% as pension: 25%	as lump sum: 55% as pension: 25%
Lifetime Allowance Charge if excess drawn:	as pension: 25%	as pension: 25%	as pension: 25%
Money Purchase Annual Allowance	£4,000	£4,000	£4,000

* Unused allowances from the previous three tax years (limited by the annual allowance) may be carried forward to increase the 2017 /18 current year allowance. From 6th April 2016 onwards, there will be a reduction in the annual allowance by £1 for every £2 of adjusted income over £150,000 up to an upper limit of £210,000. From 6 April 2020, the threshold income will be over £200,000 and the adjusted income will be over £240,000. From 6 April 2020, the minimum level of which the annual allowance can taper down to will be reduced from £10,000 to £4,000.

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