Pension Tax-Free Lump Sum Calculator
Separate tax-free cash from taxable income and money left invested. Use your remaining allowances to explore an ordinary defined contribution pension withdrawal.
Can I take 25% of my pension tax-free?
Usually up to 25% of the benefits brought into payment can be tax-free, subject to available allowances and eligibility. The standard total LSA is £268,275 and LSDBA £1,073,100 across schemes; these are not automatically your remaining amounts.
Choose PCLS cash with separate drawdown, or an eligible UFPLS lump sum. The calculator estimates 2026/27 annual tax, not the tax code deduction on a particular payment. It does not choose the best route for you.
Your pension cash illustration
Ordinary uncrystallised defined contribution funds only. Assumes you are eligible to access the pension and your provider offers this route. This does not calculate protected tax-free percentages, DB benefits, disqualifying pension credits, small-pot rules or your legal entitlement.
The entire entered amount is crystallised in this model. Any wider pension not entered is excluded.
Up to 25% of the entered amount, limited by both remaining allowances. Excess requests are rejected.
Separate from tax-free PCLS. The remaining crystallised fund is not paid out automatically.
Include salary, State Pension and other pensions as relevant. No automatic State Pension, savings or dividend calculation.
£268,275 is the standard total, not necessarily your remaining amount across all schemes. Enter provider-confirmed availability or an explicit scenario.
£1,073,100 is the standard total. Prior benefits, protection and transitional rules can change availability. Check with providers.
For benefits taken before 6 April 2024, allowance use may be based on transitional rules rather than the cash you remember receiving. A transitional tax-free amount certificate can matter; obtain advice and provider confirmation before a relevant payment. Do not simply subtract all past withdrawals from the standard allowance.
Confirm the allowance assumption to see the illustration. Defaults are examples, not a personal entitlement.
How the allowance check works
Reviewed 18 October 2026. Enter the remaining LSA and LSDBA across all schemes, after prior use and any applicable protection or transitional calculation. This tool does not reconstruct them from past cash withdrawals. The lower remaining allowance can restrict the cash.
For the PCLS route, maximum tax-free cash in this ordinary DC illustration is the lowest of 25% of the entered amount brought into payment, remaining LSA and remaining LSDBA. A request above that maximum is rejected. Taxable drawdown is a separate input and must fit inside the remaining fund.
For UFPLS, the tax-free part is the lowest of 25% of the gross withdrawal and the two remaining allowances. The rest is taxable pension income. This is an eligible-payment illustration, not a provider authorisation. Protected percentages, DB benefits, pension-credit exclusions and special lump sums are outside scope.
Worked examples: cash paid versus money left invested
| Route and fund | Gross paid | Tax-free | Taxable | Tax | Net paid | Fund left |
|---|---|---|---|---|---|---|
| PCLS: £250,000 brought into payment; £62,500 cash, no income | £62,500 | £62,500 | £0 | £0 | £62,500 | £187,500 drawdown |
| UFPLS: £100,000 fund; £20,000 gross, no other income | £20,000 | £5,000 | £15,000 | £486 | £19,514 | £80,000 uncrystallised |
If the PCLS example also takes £20,000 taxable drawdown with £30,000 other annual income, the additional England/Wales/NI tax is £4,000. Gross pension paid is £82,500, net paid £78,500 and drawdown fund left £167,500. In Scotland under the same assumptions, the pension-attributable tax is £5,530.98. Other income itself is not included in the net pension output.
Allowance-limited UFPLS example: a £20,000 gross payment, £3,000 remaining LSA and £1,000 remaining LSDBA gives £1,000 tax-free and £19,000 taxable. With no other income, standard England/Wales/NI annual tax is £1,286 and net paid is £18,714. This shows why checking LSA alone is insufficient.
Check these points before a withdrawal
- Access and scheme rules: normal minimum pension age is usually 55, rising to 57 from 6 April 2028. Protected ages, ill-health and scheme restrictions can differ. No age-eligibility decision is made here.
- Future contributions: PCLS alone normally avoids triggering the MPAA, while UFPLS or taxable flexi-access drawdown normally triggers it. Exceptions and pension-recycling rules require care. This is not advice to take cash while still working.
- Tax year and other income: spreading taxable withdrawals can change tax, but savings depend on actual income and allowances in each year. No fixed £6,000–£10,000 saving or best route is promised. A pension cannot simply be transferred to a spouse to use their tax bands.
- Benefits and cash outside the pension: means-tested support, investment risk and tax on later savings income can matter. Remaining invested fund is not spendable cash already received.
- Death benefits: estate IHT and beneficiary Income Tax are separate. From deaths on 6 April 2027, most unused pension funds/death benefits enter the estate, subject to exemptions. No inheritance outcome is calculated here.
Frequently Asked Questions
Official sources and guidance
- GOV.UK: lump sum allowances and individual and transitional allowance rules
- HMRC: PCLS limits and UFPLS taxation
- MoneyHelper: MPAA triggers and exceptions
- UK Income Tax rates and Scottish 2026/27 rates
- HMRC pension-tax refund guidance
- HMRC: pension Inheritance Tax from April 2027
- Free Pension Wise guidance
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