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Annual Allowance and Lifetime Allowance

Annual Allowance

The maximum amount that can be paid tax-free each year towards your retirement savings is called the Annual Allowance. This is set by the Government and includes both your contributions and those paid by Tesco.

Although this won’t affect many people, if you do reach these limits you could face a tax bill. 

Lifetime Allowance

The total value of the benefits you can have at retirement without incurring a tax charge is called the Lifetime Allowance. Again, it is unlikely to affect many of our colleagues, but if you do reach these limits you may have to pay a tax charge.

See the Tax Facts Sheet for more information.