Your tax-free cash. You're the only one keeping track.

The Lump Sum Allowance (£268,275 for most people) decides how much of your pension you can take tax-free — across every pension you hold, DB and DC combined. But no single scheme, and no central HMRC system, adds up your total usage. In practice, you may be the only person who knows how much you've used. Here's why that job landed on you without anyone telling you, how HMRC actually keeps tabs, what it costs if you go over — and the one piece of paperwork some people should sort out before taking another penny. 📌 WHAT THIS VIDEO COVERS Why the LSA is a single allowance shared across all your pensions, not one per scheme Why your providers each see only their own slice — and rely on you to fill in the rest Where the responsibility to track it really sits, in plain terms How HMRC monitors usage after the fact, rather than in real time Why exceeding it means tax at your marginal rate — not the old 55% charge Why phased retirement multiplies the tracking burden The Transitional Tax-Free Amount Certificate (TTFAC) some people should consider before their next lump sum — covered fully in the follow-up video 📚 SOURCES HMRC Pensions Tax Manual — PTM160400 (member information obligations), PTM164600 (benefit statements), PTM173000 (transitional rules) The Registered Pension Schemes (Provision of Information) Regulations 2006 Finance Act 2004 (as amended); Finance Act 2024 (abolition of the Lifetime Allowance) HMRC Pension Schemes Newsletters / Lifetime Allowance abolition guidance; Event Report 24 (Managing Pension Schemes service) Pensions Dashboards Programme ⏱️ CHAPTERS 0:00 — The allowance only you can track 1:06 The visibility problem: who can see what 2:39 — Does HMRC really expect you to keep track? 3:50 — How HMRC keeps tabs (Event 24) 5:50— Will anything ever track it for you? (pension dashboards) 7:31 — What happens if you go over the allowance 8:06— Phased retirement and why it makes tracking harder ⚠️ This video is general information about how pension allowances work and is not personal financial advice or a recommendation. Pension and tax rules are complex, depend on your individual circumstances, and can change. You should seek regulated, personalised advice before acting.