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Annual allowance

The annual allowance is a limit set by HM Revenue & Customs (HMRC) on the total amount of pension savings you can make in each tax year and still benefit from tax relief.

The annual allowance is normally £60,000 (£40,000 prior to the 2023/24 tax year). You may be able to carry over any allowance you did not use from the previous three tax years. You will have a reduced allowance in the current tax year if your threshold income is over £200,000 and your adjusted income is over £260,000. For every £2 your adjusted income is over £260,000 your allowance reduces by £1, up to a maximum reduction of £50,000.

You can find out more about the annual allowance, including calculators to help you work out if you have any unused allowance to carry forward and your reduced allowance if you have a high income by using the link below.

What you need to do

For most members no action is required, as the annual allowance is generally only of concern to those members with higher salaries and long membership, those paying significant Additional Voluntary Contributions and/or buying a high number of Added Years over a relatively short period.

It is, however, important that you are aware of the annual allowance because if you exceed it, you could be subject to an additional tax charge. To find out more:

• Read the information available from HMRC (see the links above)

• If you think you are affected, or may be affected in the future, you should consider taking independent financial advice. If you do not already have a financial adviser who can advise you on your pension there are lots of ways to find one, including dedicated financial adviser search tools on websites, such as MoneyHelper. However you find an adviser, it is usually worth speaking to two or three of them to compare their services and prices before committing to one. See the links below for some questions you may want to ask. Also, check the Financial Conduct Authority's register to ensure the adviser you are thinking about using is regulated and approved by them. If they are not registered, you will not have access to the Financial Ombudsman Service or Financial Services Compensation Scheme if things go wrong.

The 91热爆 and the Trustees of the 91热爆 Pension Scheme cannot advise you what to do. If you have any questions you can contact the pension service line on 0303 081 2848 or email myPension@bbc.co.uk but you should speak to a financial adviser if you think you are, or will be, affected by the annual allowance.

Lump sum limits

From 6 April 2024, the government has imposed new limits on the amount of tax-free cash that can be taken from a pension scheme.

The lump sum allowance (LSA) places a limit on the amount of pension savings that you can take as a tax-free lump sum. It is currently 拢268,275 for the 2024/25 tax year, unless you previously applied to HM Revenue & Customs (HMRC) for lifetime allowance* protection (in which case a higher limit may apply).

When calculating your available LSA, you need to deduct any tax-free cash you鈥檝e already received from other pension schemes. This includes pension commencement lump sums and the tax-free elements of any uncrystallised funds pension lump sums.

The lump sum and death benefit allowance (LSDBA) restricts the amount of lump sum death benefits that can be paid free of income tax from all registered pension schemes to 拢1,073,100 (unless you have a lifetime allowance* protection, in which case a higher limit may apply).

When calculating the available LSDBA, you need to deduct certain lump sums, including pension commencement lump sums, the tax-free elements of any uncrystallised funds pension lump sums and serious ill-health lump sums, among others. Benefits payable on your death will be tested against your remaining allowance, and any excess will taxed at the marginal rate of the individual(s) who receive them.

There are currently no provisions for the LSA and the LSDBA to increase automatically (for example in line with inflation).

If you think you may be affected by the LSA or LSDBA, or may be affected in the future, you should consider taking independent financial advice. If you do not already have a financial adviser who can advise you on your pension there are lots of ways to find one, including dedicated financial adviser search tools on websites, such as MoneyHelper. However you find an adviser, it is usually worth speaking to two or three of them to compare their services and prices before committing to one. See the links below for some questions you may want to ask. Also, check the Financial Conduct Authority's register to ensure the adviser you are thinking about using is regulated and approved by them. If they are not registered, you will not have access to the Financial Ombudsman Service or Financial Services Compensation Scheme if things go wrong.

The 91热爆 and the Trustees of the 91热爆 Pension Scheme cannot advise you what to do. If you have any questions you can contact the pension service line on 0303 081 2848 or email myPension@bbc.co.uk but you should speak to a financial adviser if you think you are, or will be, affected by the allowances.

*The lifetime allowance (LTA) was a limit on the total amount of pension savings you could build up in the UK without paying a separate charge. From 6 April 2023 to 5 April 2024, the LTA charge no longer applied (instead, people paid income tax at their marginal rate on any benefits that exceeded the LTA). The LTA was abolished from 6 April 2024, with the above lump sum limits applying instead.