Lifetime Allowance Enhancement Certificate

Lifetime Allowance and Enhancement Certificate

Pension Advice Pages


spacersm12.png” height=”12px” alt=”pensions”/>



Please enter the total value of your pension. If your enquiry relates to a new pension enter your desired annual contributions







The age at which you are expecting to retire



Our Privacy PolicyTerms and Conditions





first step


  Welcome to The Complete Pension Guide 2017!

For – setting up a new pension, reviewing your pension, approaching retirement, looking into auto enrolment, and buying your annuity or entering income drawdown

Annuities: Immediate Vesting Personal Pension Plan (IVPPP) – Compulsory Purchase Annuity (CPA) – Purchased Life Annuity (PLA)

Free online quotes available to source the products and providers with the best rates and deals.



Lifetime Allowance and Enhancement Certificate

Lifetime Allowance Enhancement CertificateLifetime Allowance
Continue reading if you have purchased any other policy barring a Purchased Life Annuity.

Unfortunately, there is a limit on how much you can save in a pension over the course of your life known as a Lifetime Allowance. This limit seems to change every year and increased to £1.8 million in 2016. However, due the economic constraints, the government has decided to lower the Lifetime Allowance once again with £1.5 million the new limit to be implemented in 2017.

In rare situations, you may have a Lifetime Allowance Enhancement Certificate given to you by HM Revenue Customs. This enables you to go beyond the allowance and receive more than the limit on the day you retire in benefits. It would be a good idea to speak to a financial adviser for more details on this certificate.

The Certificate basically contains an amount which you are allowed save above the allowance but if you go beyond this limit or the normal limit and have no certificate, the additional amount can still be taken in a lump sum or taxable income but a heavy tax charge will apply. Withdrawing the excess as a pension will cost you 25% tax but doing so in a single lump sum will see you hit with a 55% tax charge.

The provider that is dealing with your pension and paying you regular taxable income from an annuity will need to see proof that your total pension benefits are less than the current Lifetime Allowance when you retire. This is easily done if you have all your pension benefits in one place and are using them to purchase an annuity. In the event that you have benefits in more than one location, contact each provider to discover your pension’s total value. Pensions in payment are calculated by multiplying the amount received by 25. This will give you a good idea of your pension value but it is still best to contact a financial adviser for a concrete valuation.