UK Pension 25% Tax-Free Lump Sum Calculator
Calculate your 25% tax-free PCLS (Pension Commencement Lump Sum) and income tax due on the remaining pension drawdown under UK HMRC rules.
Calculation Inputs
Calculation Results
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Enter inputs on the left and click Calculate to view results.
Formula & Methodology
Tax-Free Lump Sum = Total Pot × 25% (subject to Lump Sum Allowance cap of £268,275)
Under UK pension freedom rules, up to 25% of your defined contribution pension pot can be taken tax-free.
Frequently Asked Questions
What is the UK Lump Sum Allowance cap?
The UK Lifetime Allowance was replaced in April 2024 with the Lump Sum Allowance (LSA) capped at £268,275.