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Annual and lifetime allowance

Will I exceed my pensions annual and lifetime allowances?

The Local Government Pension Scheme (LGPS) is fully approved by HM Revenue and Customs (HMRC), which means that you get tax relief on your contributions as they are deducted from your pay. However, there are two HMRC controls on the amount of pension savings you can have before you become liable to an extra tax charge. This is on top of any tax due under the PAYE system on your pension once you start getting it.

The two controls on pension savings are known as the annual allowance and the lifetime allowance. On these pages we take a brief look at these allowances.

Most people will be able to save as much as they wish with full tax relief because their pension savings will be less than the allowances.