Pensions Taxation – Annual Allowance
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As of 6 April 2024 the Lifetime Allowance (LTA) was replaced by the Lump Sum Allowance (LSA). Individuals are entitled to a Lump Sum Allowance of £268,275 unless they have a protected right to a higher lump sum allowance (explained below).

If an individual exceeds £268,275 when a relevant benefit crystallisation event occurs, the excess of the lump sum will be subject to income tax at the individual’s marginal rate. For more information please see [HMRC’s Pensions Tax Manual](https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm171000).

As Pension Administrators, we are legally obliged to provide scheme members with a [Pensions Savings Statement](https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fguidance%2Fpension-administrators-annual-and-lifetime-allowance-statements%23pension-savings-statement&data=05%7C01%7CEmma.Davies%40devon.gov.uk%7Cd6a4ea438bb04c1ccb6a08dacc66eed7%7C8da13783cb68443fbb4b997f77fd5bfb%7C0%7C0%7C638047039702308551%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=%2B%2BSY87t0675hzglwVQLPANk7RjdvvfQ53Tfb17I%2BA4w%3D&reserved=0) relating to Annual Allowance, where the pension savings in the pension input period are more than the annual allowance. This must be provided before 6 October following the end of the relevant tax year.

If it is an estimate of your Annual Allowance that you require, please use the[ LGPS Annual Allowance – Quick Check Tool](https://www.lgpsmember.org/help-and-support/tools-and-calculators/annual-allowance-quick-check-tool/), or alternatively, contact your Independent Financial Advisor (IFA) to arrange this. To find your nearest IFA check out the [MoneyHelper website](https://eur02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.moneyhelper.org.uk%2F&data=05%7C01%7CEmma.Davies%40devon.gov.uk%7Cd6a4ea438bb04c1ccb6a08dacc66eed7%7C8da13783cb68443fbb4b997f77fd5bfb%7C0%7C0%7C638047039702308551%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=A4ksJDw7wMdNk4qLNvXiXO3Lu00cVTmBCtrBTswt6So%3D&reserved=0).

More information, including factsheets covering both annual and lifetime allowance, can be found on the national LGPS website at [Tax controls and your pension](https://www.lgpsmember.org/ats/about-tax.php) and you can watch the videos below.

Please also find an annual allowance guide [here.](https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Flgpslibrary.org%2Fassets%2Fgas%2Few%2FAAMv1.13t.docx&wdOrigin=BROWSELINK)