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Pension scheme rates

Pension Schemes rates before 6 April 2010

Pension Schemes rates for the tax years 2006-07 to 2009-10 are available on the National Archives website.

Find Pension Schemes rates for previous tax years on the National Archives website

Pension Schemes rates after 6 April 2010

Standard Lifetime Allowance
Tax Year Amount (£)
2010-11 £1,800,000
2011-12 £1,800,000
2012-13 £1,500,000
2013-14 £1,500,000

Member contributions

There is no limit on the amount that an individual can contribute to a registered pension scheme. If you are a UK resident aged under 75 you may receive tax relief on your contributions to a registered pension scheme. Tax relief is limited to relief on contributions up to the higher of

  • 100 per cent of your UK taxable earnings
  • £3,600

Any amount of contributions paid over the annual allowance will be liable to the annual allowance charge.

Annual Allowance
Tax Year Amount (£)
2010-11 £255,000
2011-12 £50,000
2012-13 £50,000
2013-14 £50,000

Tax charges on payments from registered pension schemes

There are a number of special tax charges that apply to special payments made from registered pension schemes. These are listed below. The normal Income Tax rates apply to ordinary pensions payments made from pension schemes.

Charges Rates
Lifetime allowance charge 55% - if the amount over the lifetime allowance is paid as a lump sum
25% - if the amount over the lifetime allowance is not taken as a lump sum
Annual allowance charge Years to 2010-11
40%
Annual allowance charge From 2011-12
marginal rate of Income Tax
Unauthorised payments charge 40%
Unauthorised payments surcharge 15%
Short service refund lump sum charge 20% on first £20,000, 50% on amount over £20,000
Special lump sum death benefits charge for deaths before 6 April 2011 35%
Special lump sum death benefits charge for deaths on or after 6 April 2011 55%
Authorised surplus payments charge 35%
Serious ill-health lump sum charge 55%
Scheme sanction charge 15% - 40%