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Lifetime Allowance and Annual Allowance

HM Revenue and Customs impose two controls on the amount of pension savings you can make without having to pay extra tax. These controls are known as the annual allowance and lifetime allowance. This is in addition to any income tax you pay on your pension once it is in payment.

Freedom and Choice

In April 2015, the tax rules were changed to give people greater access to their pensions.

Freedom and Choice (PDF,139KB).

Pensions saving statements

What is a pension savings statement?

Your pension savings statement shows the growth in your pension benefits in the Warwickshire Pension Fund and checks them against Her Majesty's Revenue and Customs' (HMRC) annual allowance (AA). 

What is the annual allowance?

The annual allowance is the maximum amount of pension savings on which you can receive tax relief each year. The annual allowance is set by HMRC.

Why have I received a pension savings statement from you?

We have sent you this statement for one of the following reasons:

• our records show that the increase in your pension savings in the Warwickshire Pension Fund over the relevant tax year exceeds the standard annual allowance, based on the information we hold on your pension record at the time of the calculation
• your increase in pension savings is close to the HMRC annual allowance limits and could exceed these limits if you are also a member of another UK based pension arrangement
• you have requested a statement

What should I do with my pension savings statement?

Where your pension savings exceed the annual allowance in the relevant tax year, there may be an annual allowance tax charge payable on the amount of the excess over annual limit.

You need to find out if you have an annual allowance tax charge, and the information contained in your pension savings statement should help you to discover this.