Answers · UK 2025/26
Was the UK pension Lifetime Allowance abolished?
Yes. The Lifetime Allowance was abolished from 6 April 2024. The Lump Sum Allowance (£268,275) and Lump Sum and Death Benefit Allowance (£1,073,100) replaced it.
Full answer
The pension Lifetime Allowance (LTA), which previously charged 25% or 55% on pension funds above £1,073,100, was abolished from 6 April 2024 as announced in the Spring Budget 2023. It was replaced by two new allowances: (1) the Lump Sum Allowance (LSA) of £268,275 -- the maximum tax-free cash (PCLS) you can receive from all pension schemes combined; (2) the Lump Sum and Death Benefit Allowance (LSDBA) of £1,073,100 -- the maximum of tax-free cash and death benefit lump sums combined. Amounts above the LSA are taxed at income tax rates. Those who previously held LTA protection retain it for the relevant lump sum allowances.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.