Pension Contribution Limits

How much can be paid or invested into a pension fund depends upon the Member’s contribution history over the current and previous three income tax years.

The UK pension rules include two specific important limits on funding of the pension scheme, which are:

• an annual limit to all contributions, known as the Annual Allowance (AA)
• a lifetime limit to the total value of the investment fund, known as the pensions Lifetime Allowance (LTA). This is currently £1,073,100 and amounts accrued above, by age 75 incur a separate ‘LTA Tax Charge’ of at least 25% deducted from the fund.