The Lifetime Allowance (LTA) is the overall amount of pension savings that you can have at retirement without incurring a tax charge (excluding any State Pension benefits).

With effect from April 2016 the LTA reduced from £1.25 million to £1 million. At the same time it was announced that by April 2018 the LTA would increase annually by inflation.

The Treasury has recently confirmed that with effect from 6 April 2018, the LTA will be increasing from £1 million to £1.03 million, which is in line with the rise in the Consumer Prices Index (CPI) for September 2017.