• Firefighter Member Banner Pension Tax Allowance (since 2006)
     Home / Firefighter Member / Taxation / Pension Tax Allowance (since 2006)

    Pension tax allowances since 2006Annual Allowance and Lifetime Allowance

    Tax Year Annual Allowance (AA) Maximum unused AA available to carry forward Factor for valuing final salary benefits Lifetime Allowance (LTA)
    2019-20 40,0002 40,000 16 1,055,000
    2018-19 40,0002 40,000 16 1,030,000
    2017-18 40,0002 40,000 16 1,000,000
    2016-17 40,0002 40,000 16 1,000,000
    2015-16 80,0001 40,000 16 1,250,000
    2014-15 40,000 40,000 16 1,250,000
    2013-14 50,000 50,000 16 1,500,000
    2012-13 50,000 50,000 16 1,500,000
    2011-12 50,000 50,000 16 1,800,000
    2010-11 255,000 50,000 10 1,800,000
    2009-10 245,000 50,000 10 1,750,000
    2008-09 235,000 50,000 10 1,650,000
    2007-08 225,000 50,000 10 1,600,000
    2006-07 215,000 50,000 10 1,500,000

    1 The allowance is split across pre and post budget dates -
       • 6 April 2015 to 8 July 2015 - £80,000
       • 9 July 2015 to 5 April 2016 - £0
    2 But potentially subject to a lower tapered annual allowance.

    Tax charges on payments from registered pension schemes

    Type of charge Rates
    Lifetime allowance charge 55% - if the amount over LTA is paid as a lump sum
    25% - if the amount over LTA is taken as pension
    Annual allowance charge Marginal rate of income tax
    Unauthorised payment charge 40%
    Unauthorised payment surcharge 15%
    Overseas transfer charge 25%
    Short service refund lump sum charge 20% on first £20,000
    50% on amount over £20,000
    Special lump sum death benefits charge 45%
    Authorised surplus payments charge 35%
    Scheme sanction charge 15% to 40%