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You asked: What is the Lifetime Allowance?

The lifetime allowance is set by the government and is a limit on the total amount of pension fund you can use for retirement benefits before additional tax applies. The limit is currently £1,055,000. If you go over the limit, you'll have to pay extra tax on the amount over the lifetime allowance. If you take this amount as a lump sum you'll have to pay a tax charge of 55%. If you choose to use this amount to provide an income you'll pay a tax charge of 25%.

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