Glossary · Pensions
Lump Sum Allowance (LSA)
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Definition: The total tax-free cash anyone can take from all their pensions combined — £268,275 from 6 April 2024, when the Lifetime Allowance was abolished.
The companion Lump Sum and Death Benefit Allowance (LSDBA) is £1,073,100 and covers tax-free death benefits in addition to retirement lump sums. Some people have transitional protection allowing higher amounts.
Primary source: gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm176000