Lifetime Allowance
The lifetime allowance was a totally new concept introduced by the government on 6 April 2006.
A lifetime allowance test, called a benefit crystallisation event, will be applied to check, whenever you take pension benefits, that the pension benefits are within your lifetime allowance.
If your lifetime allowance is exceeded, an excess fund charge would be payable.
As is the case with the annual allowance, the government will set the lifetime allowance every 5 years.
For the period 6 April 2006 to 5 April 2016, the lifetime allowance has been set as follows:
| Tax Year | Lifetime Allowance |
|---|---|
2006 / 2007 |
£1,500,000 |
2007 / 2008 |
£1,600,000 |
2008 / 2009 |
£1,650,000 |
2009 / 2010 |
£1,750,000 |
2010 / 2011 |
£1,800,000 |
2011 / 2012 |
£1,800,000 |
2012 / 2013 |
£1,800,000 |
2013 / 2014 |
£1,800,000 |
2014 / 2015 |
£1,800,000 |
2015 / 2016 |
£1,800,000 |
