What is the Tax Free Lump Sum Calculator?
The 25% Tax Free Lump Sum Calculator helps you estimate how much tax-free cash you can take from your UK pension under current Lump Sum Allowance rules. It shows the maximum available 25 per cent, how much of your allowance you have left, and how much tax you may pay if you withdraw more than the tax-free limit.
How the Calculator Works?
You enter your pension pot value, remaining Lump Sum Allowance, and any previous tax-free cash taken. You then choose the lump sum you want to model: the maximum 25 per cent, a custom amount, or a percentage of your pot.
The calculator compares your chosen lump sum to your remaining allowance, splits it into tax-free and taxable parts, and estimates the income tax due based on your other income for the year. It then shows the net amount you receive and the remaining pot value.
Step One: Enter Your Pot and Allowances
Add your pension pot value, age, and any tax-free cash already taken. Choose whether you’re using the standard Lump Sum Allowance or a custom allowance (for protection cases).
Step Two: Choose Your Lump Sum
Select whether you want to take the maximum 25 per cent tax-free amount or enter a custom lump sum in pounds or as a percentage of your pot.
Step Three: Add Your Other Taxable Income
Enter your salary or other taxable income for the year. This allows the calculator to estimate income tax on any part of the lump sum that is taxable.
Disclaimer: This calculator provides illustrative estimates only and does not constitute financial advice. Lump Sum Allowance rules and income tax bands may change. Pension withdrawals depend on your provider’s rules and personal situation. Speak to a regulated adviser for personalised guidance.
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What is the 25% Tax Free Lump Sum Calculator?
It shows how much tax-free cash you can take from your pension, how much of your allowance you use, and how much tax you may owe if part of your lump sum is taxable.
What does this calculator model?
It calculates the tax-free and taxable portions of a pension lump sum, estimates the tax owed, and shows the net amount you receive.
What information do I need to use it?
Your pension pot value, remaining Lump Sum Allowance, any previous tax-free withdrawals, and your taxable income for the year.
Can I enter a custom lump sum?
Yes. You can model the maximum 25 per cent, a fixed amount, or a percentage of your pot.
Does this work for all pension types?
It is designed for defined contribution pensions (personal pensions, SIPPs and workplace DC schemes). Defined benefit schemes may have different rules.
Does it include every protection type?
No. The calculator includes a custom allowance option but does not model every specific protection scenario.
How accurate are the results?
They are estimates based on current tax rules. Actual figures may differ depending on your provider and future tax changes.
Is this financial advice?
No. It is a planning tool only.
Is my information stored?
No. All calculations run locally in your browser and are not saved or transmitted.