Tax-Free Pension Lump Sum Calculator

Work out the tax-free cash you can take from a UK pension and the tax on further withdrawals.

Pension pot	£400,000
Lump Sum Allowance remaining	£268,275
Other taxable income that year	£15,000
Taxable amount you'll also withdraw that year	£0

Pension pot

Lump Sum Allowance remaining

£268,275 unless you have protection or have taken tax-free cash before

Other taxable income that year

Taxable amount you'll also withdraw that year

Tax-free lump sum

£100,000

25% of your pot. £300,000 remains to be taken as taxable income. Taking it all at once can push you into higher tax bands.

Your pension pot

Tax-free lump sum25%: £100,000
Taxable when withdrawn75%: £300,000

About the Tax-Free Pension Lump Sum Calculator

From age 55 (57 from April 2028) you can usually take 25% of a defined contribution pension tax-free. Since April 2024 the total tax-free cash across all your pensions is capped by the Lump Sum Allowance of £268,275, unless you have a protected higher amount. The rest is taxed as income when withdrawn, at your marginal rate. Spreading withdrawals over tax years can keep more in lower bands.

The formula

Tax-free cash = min(25% × pot, Lump Sum Allowance remaining)

Worked example

Example: Tax-free lump sum = £110,000

Inputs: Pension pot: £440,000; Lump Sum Allowance remaining: £300,000; Other taxable income that year: £17,000; Taxable amount you'll also withdraw that year: £0.
Formula: Tax-free cash = min(25% × pot, Lump Sum Allowance remaining)
Result: Tax-free lump sum = £110,000

Questions people ask

Do I have to take it all at once?

No, with drawdown or UFPLS you can take it in stages.

Will an emergency tax code apply?

Often on the first flexible withdrawal; you can reclaim overpaid tax.

Sources

The rules and rates this calculator uses come from the official pages below. Its results are estimates, not an official determination, and rules change, so check the latest figures there before you act on them.

GOV.UK: Lump Sum Allowance