How much pension can I take tax-free?

You can take 25% of your pension as a tax-free lump sum, up to a maximum of £268,275 (the former Lifetime Allowance tax-free cash limit, frozen after LTA abolition in April 2024).

What happens to the remaining 75%?

The remaining fund is used to provide taxable income via drawdown or annuity. Income is taxed as earnings at your marginal rate when withdrawn.

What is the Lump Sum Allowance?

The Lump Sum Allowance (LSA) of £268,275 replaced the LTA tax-free cash rules from April 2024. It applies to tax-free cash taken from all pension pots combined.

UK Pension Tax-Free Lump Sum (PCLS) Calculator

Calculate Pension Commencement Lump Sum (PCLS): 25% of pension fund tax-free, up to £268,275 lifetime limit (post-2024 LTA abolition). Shows remaining taxable crystallised benefits.

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate Pension Commencement Lump Sum (PCLS): 25% of pension fund tax-free, up to £268,275 lifetime limit (post-2024 LTA abolition). Shows remaining taxable crystallised benefits. Use the uk pension tax-free lump sum result to inform your calculation.

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