RPSM11201010 - Member Pages: Lifetime allowance: Tax consequences: Benefits within the Lifetime allowance

General

If all benefits taken from a members registered pension scheme or schemes are within the lifetime allowance there will be no lifetime allowance charge (see RPSM11200020).

A tax free lump sum of up to 25% of the fund can be taken subject to scheme rules (see RPSM09104000) and pension, will be subject to the normal tax rules. This will usually be taxable under PAYE.

Any benefits taken which are not authorised member payments will be taxed as an unauthorised member payment