The contributions you pay to the LGPS are tax-free up to certain limits. You may have to pay tax if your pension savings are more than those limits. The Government has recently made changes to these limits:
- the annual allowance has increased from £40,000 to £60,000 from 6 April 2023
- no-one will pay a lifetime allowance charge from 6 April 2023.
The money purchase and tapered annual allowance limits have also changed. See the Tax section for more information.