HM Revenue and Customs rules govern the total amount of contributions you can make into all pension arrangements and receive tax relief and the pension savings you can have before you become subject to a tax charge.
From 6 April 2006 you can, if you wish, pay up to 100% of your taxable earnings in any tax year (or £3600 if greater) into any number of concurrent pension arrangements of your choice and receive tax relief on the contributions.
There are three main allowances for pension savings - a lifetime allowance, an annual allowance and a special annual allowance. The lifetime allowance, annual allowance and special annual allowance cover any pension benefits you may have in all tax-registered pension arrangements – not just the LGPS – but exclude the State Pension. These allowances are only likely to affect some higher paid people.
There are protections for benefits earned up to 5 April 2006 in respect of those high earners affected by the introduction of the lifetime allowance from 6 April 2006.
Most people will be able to save as much as they wish with full tax relief as their pension savings will be significantly less than the allowances.