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Pension premiums
Pension premiums
| 2019/20 | |
| Minimum age for taking benefits | 55 |
| Annual allowance * | £40,000 |
| Annual allowance charge on excess | 20%-45% |
| Lifetime allowance | £1.055 million |
| Lifetime allowance charge if excess drawn * | as cash 55% - if income 25% |
| Tapered annual allowance (applies to income over this amount) - amount including pension contributions | £150,000 |
| Normal maximum tax-free lump sum | 25% |
| Money purchase annual allowance | £4,000 |
| Stakeholder/permitted pension contributions regardless of salary | £3,600 |
* Subject to 50% taper down to £10,000 if threshold income over £110,000 and adjusted income (including employer pension contributions) over £150,000.
Annual allowance
There may be an entitlement to a greater allowance if there are unused reliefs from the 3 earlier tax years. The relief may however be reduced to £4,000 if pension savings are accessed in the tax year.