The lifetime allowance is sometimes referred to as the standard lifetime allowance. It is the maximum pension fund that an individual can accumulate from all of the pension schemes of which they are a member during their lifetime, without being subject to a tax charge, known as the lifetime allowance charge.
A member’s fund must be tested against the lifetime allowance when they take benefits and at age 75 if benefits have not been taken.
The lifetime allowance is determined by the Chancellor of the Exchequer. The amounts for tax years 2012/2013 to 2015/2016 are as follows:
| Tax Year End | Lifetime Allowance |
|---|---|
| 5/4/2013 to 5/4/2016 | £1,500,000 |