What replaced the UK Pension Lifetime Allowance (LTA)?

The Lifetime Allowance was abolished and replaced by the Lump Sum Allowance (LSA capped at £268,275) and the Lump Sum and Death Benefit Allowance (LSDBA capped at £1,073,100).

How are pension withdrawals above the tax-free limit taxed?

Any pension withdrawals beyond your statutory 25% tax-free cash entitlement are treated as taxable income and taxed at your marginal UK Income Tax rate (20%, 40%, or 45%).

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UK Pension Tax-Free Lump Sum & LSA Allowance Calculator

Calculate your maximum 25% tax-free Pension Commencement Lump Sum (PCLS) capped at the statutory Lump Sum Allowance (LSA of £268,275).

Retirement & Pensions Lump Sum Allowances Lump Sum Allowance (LSA)Tax-Free Allowances

Calculated Result

Maximum Tax-Free Lump Sum (PCLS)

£112,500

Calculator Inputs

Total Pension Pot Value (£)

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LSA Already Utilised (£)

Calculated Result

Maximum Tax-Free Lump Sum (PCLS)

£112,500

Taxable Pension Fund Remaining

£337,500

Remaining LSA Capacity

£155,775

Calculation Methodology

Tax-Free Cash = min(0.25 * Total Pension Pot, max(0, 268275 - Previous Lump Sums Used)). Taxable Balance = Total Pension Pot - Tax-Free Cash.

Important Legal & Educational Disclaimer

The Lifetime Allowance was abolished on 6 April 2024 and replaced by the Lump Sum Allowance (LSA) of £268,275 and Lump Sum and Death Benefit Allowance (LSDBA) of £1,073,100.

This calculator is designed for educational and informational purposes only based on public statutory frameworks. The outputs do not constitute binding financial, tax, or legal advice. We assume no liability for decisions made based on these estimations. Always verify with the relevant official authorities or a certified professional advisor.

Frequently Asked Questions

Under standard rules without transitional protection, the maximum tax-free lump sum is 25% of your pension fund, capped at £268,275 across all your pensions.

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United Kingdom

UK Pension Tax-Free Lump Sum & LSA Allowance Calculator

Calculator Inputs

Calculation Methodology

Important Legal & Educational Disclaimer

Frequently Asked Questions

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