The LTA is the limit on what you can take from your pension savings (including a cash lump sum and/or an income) before you’re charged tax. If you’ve paid any additional contributions, they’ll also count towards your LTA.
The LTA limit for the 2020/2021 tax year is £1,073,100.
There are a few ways you can manage the tax you’ll need to pay if you’ve gone over your LTA. This includes using Enhanced Opt Out (EOO) or a Voluntary Salary Cap (VSC).
Find out what you need to know about the LTA.