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Pension premiums

  2020/21
Minimum age for taking benefits    55
Annual allowance * £40,000
Annual allowance charge on excess 20-45%
Lifetime allowance   £1,073,100
Lifetime allowance charge if excess drawn 55% if taken as cash lump sum - 25% if taken as income
Tapered annual allowance (applies to income over this amount) - amount including pension contributions £240,000 
Normal maximum tax-free lump sum  25%
Money purchase annual allowance  £4,000
Stakeholder/permitted pension contributions regardless of salary £3,600 (gross)

* Subject to 50% taper down to £10,000 if threshold income over £200,000 and adjusted income (including employer pension contributions) over £240,000.

Annual pensions allowance

There may be an entitlement to a greater annual pensions allowance if there are unused reliefs from the three earlier tax years, providing you had a pension fund. The unused amount of the annual allowance can be carried forward up to three years and used once the current year annual allowance has been fully utilised.. The relief may, however, be reduced to £4,000 if pension savings have already been accessed.