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 Income is taxed as earnings at your marginal rate when withdrawn.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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Frequently Asked Questions

How much pension can I take tax-free?

What happens to the remaining 75%?

What is the Lump Sum Allowance?