Tax allowances

Maximum pension benefits

HM Revenue and Customs (HMRC) does not restrict the amount you can save into pension arrangements, but it does limit the amount you can save that benefits from tax relief. This limit is called the Annual Allowance (AA). HMRC also limits the overall value of the benefits you can build up in a pension arrangement that can benefit from tax relief. This is called the Lifetime Allowance (LTA).

Within the BA Schemes, the maximum amount you can save in contributions and/or in Additional Voluntary Contributions (AVCs) – is 50% of your gross taxable salary. Gross pay for this purpose is usually pay before the deduction of the additional 3.1% of band earnings contribution introduced in April 2016.