Pension Tax-Free Lump Sum Calculator

Work out exactly how much you can take tax-free · the 25%, the £268,275 cap, and the real tax bill on anything above it.

Tax-Free This Withdrawal
£0
Enter your details to calculate
Max Tax-Free Available (All Pots)
£0
Lump Sum Allowance Left
£0
Taxable Part of Withdrawal
£0
Tax on Withdrawal
£0
You Receive
£0
MPAA Triggered?
·
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Where Your Withdrawal Goes
Lump Sum Rules at a Glance
Rule Detail
Tax-free portion25% of each DC pot
Lump Sum Allowance£268,275 lifetime cap across all pensions
Rest of withdrawalTaxed as income at your marginal rate
MPAA£10,000 contribution cap after taking taxable income
Minimum access age55 now · rising to 57 in April 2028
First taxable withdrawalEmergency Month 1 code · usually overtaxed, reclaim via P55

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Pension Lump Sum FAQs

How much of my pension is tax-free?
Normally 25% of each defined contribution pot, capped by the Lump Sum Allowance of £268,275 across all your pensions combined. Pots totalling up to £1,073,100 get the full 25%; above that, the tax-free amount is frozen at £268,275 no matter how large the pension grows.
What is the difference between UFPLS and drawdown?
With flexi-access drawdown you can take your whole 25% tax-free up front and move the remainder into drawdown to draw (taxably) later. With UFPLS, every withdrawal is automatically 25% tax-free and 75% taxable. Drawdown front-loads the tax-free cash; UFPLS spreads it. Both trigger the MPAA once taxable money is taken.
What is the MPAA and when does it trigger?
The Money Purchase Annual Allowance cuts your annual contribution allowance from £60,000 to £10,000 the moment you flexibly access taxable pension money (drawdown income or any UFPLS). Taking only tax-free cash does NOT trigger it · a crucial distinction if you plan to keep working and contributing.
Should I take the full 25% at once?
Not automatically. Money inside the pension grows tax-free; money outside is exposed to tax on growth and, once withdrawn, to Inheritance Tax immediately. Many planners recommend slicing tax-free cash out as you actually need it. Also watch the income tax bands: a big taxable withdrawal in one year can be taxed at 40% when spreading it over two years keeps it at 20%.
Why was my first withdrawal taxed so heavily?
Providers apply an emergency Month 1 code to first taxable withdrawals, often deducting thousands more than you owe. Reclaim with form P55 (money left in pot), P50Z or P53Z (pot emptied) · HMRC refunds in about 30 days. Our Emergency Tax Calculator shows your exact overpayment.

For informational purposes only · Not financial advice · Lump Sum Allowance £268,275 · MPAA £10,000 · 2026/27 income tax rates · Minimum pension age rises 55 to 57 in April 2028 · Take regulated advice or free Pension Wise guidance before accessing pensions