Break the limits of time after the Royal Institution embraces psychic powers (7)
I believe the answer is:
respite
'break' is the definition.
(respite is a kind of break)
'the limits of time after the royal institution embraces psychic powers' is the wordplay.
'the limits of' suggests removing the centre.
'after' means one lot of letters go next to another.
'the royal institution' becomes 'ri' (this could be a standard abbreviation which I don't know about).
'embraces' indicates putting letters inside.
'psychic powers' becomes 'esp' (abbreviation for extrasensory perception).
'time' with its middle removed is 'te'.
'ri' going around 'esp' is 'respi'.
'te' after 'respi' is 'RESPITE'.
(Other definitions for respite that I've seen before include "Pause to rest" , "Abatement, rest" , "Hiatus" , "temporary delay" , "Temporary break" .)