Pension Lump Sum Tax Calculator
Estimate final Income Tax on a one-off pension withdrawal for 2026/27. Compare UFPLS, where 25% of each payment is normally tax-free, with taking tax-free pension cash first.
Tax-free portion
£7,500.00
Taxable portion
£22,500.00
Estimated tax on withdrawal
£4,500.00
Net withdrawal
£25,500.00
- Withdrawal modelled
- £30,000
- Remaining Lump Sum Allowance
- £268,275
- Maximum tax-free cash from this pot
- £50,000
- Effective tax on withdrawal
- 15.0%
Your provider may initially deduct more using an emergency Month 1 tax code. This result estimates the final annual liability after your other income is included. Use the emergency tax calculator to estimate the first-payment deduction and possible refund.
UFPLS versus tax-free cash first
UFPLS
Each qualifying uncrystallised-funds pension lump sum is normally split 25% tax-free and 75% taxable. The tax-free share uses your Lump Sum Allowance, while the taxable share is added to your other income.
Tax-free cash first
Pension commencement lump sum cash can be tax-free up to 25% of the pot being crystallised and your remaining Lump Sum Allowance. Any excess modelled here is treated as taxable pension income.
Planning regular withdrawals rather than one payment? Use the pension drawdown calculator. For all recurring pension sources together, use the pension tax calculator.
Frequently asked questions
Is 25% of every pension withdrawal tax-free?
What is the Lump Sum Allowance?
Why might my provider deduct more tax than this estimate?
Does a taxable pension withdrawal trigger the MPAA?
Official sources
Related Calculators
Pension Tax Calculator
Income Tax on State Pension, private pension and other annual income, including Scottish bands.
Pension Drawdown Calculator
Tax on pension withdrawals with sustainability projection.
Emergency Tax Calculator
How much extra tax an emergency code costs, and the refund once corrected.
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