From 6 April 2024, the government introduced a new limit on how much tax-free cash you can take from your pension. This limit is currently £268,275, but if you had previously applied to HMRC for Lifetime Allowance* protection, you might have a higher limit.
There is also a limit on how much can be paid as a lump sum free of income tax from all registered pension schemes if a member dies. This limit is currently £1,073,100, but if you had previously applied to HMRC for Lifetime Allowance* protection, a higher limit might apply.
*The Lifetime Allowance (LTA) was a limit on the total amount of pension savings you could build up in the UK without paying a separate charge. From 6 April 2023 to 5 April 2024, the LTA charge no longer applied (instead, people paid income tax at their marginal rate on any benefits that exceeded the LTA). The LTA was abolished from 6 April 2024, with the above lump sum limits applying instead.