Pension Lump Sum Allowance Calculator UK
Calculate your available Lump Sum Allowance (LSA) and LSDBA following the abolition of the Lifetime Allowance. Model the £268,275 tax-free cash cap, transitional protections, and marginal tax on excess withdrawals.
Pension Fund & Crystallisation Inputs
Statutory Schedule 9 Finance Act 2024 rules replacing the Lifetime Allowance.
Standard 25% tax-free lump sum requested: £125,000.00
Cumulative PCLS or UFPLS tax-free.
Includes serious ill-health lump sums.
Statutory Allowances Status
Understanding the Post-LTA Regime: LSA and LSDBA
On 6 April 2024, the UK Lifetime Allowance (LTA)—which previously imposed a punitive 55% charge on pension pots exceeding £1,073,100—was formally abolished under Schedule 9 of the Finance Act 2024. In its place, HMRC established two distinct lump sum allowances to control the amount of tax-free cash individuals can withdraw from registered pension schemes during their lifetime and upon death.
For the 2026/27 tax year, the two core statutory thresholds remain anchored to the historical limits:
- Lump Sum Allowance (LSA) — £268,275: Governs the cumulative tax-free cash an individual can withdraw as a Pension Commencement Lump Sum (PCLS) or the 25% tax-free portion of an Uncrystallised Funds Pension Lump Sum (UFPLS).
- Lump Sum and Death Benefit Allowance (LSDBA) — £1,073,100: Governs the aggregate tax-free lump sums payable during lifetime (including serious ill-health lump sums) plus tax-free lump sum death benefits paid if death occurs prior to age 75.
- Overseas Transfer Allowance (OTA) — £1,073,100: Sets the cumulative limit for tax-free qualifying transfers to Qualifying Recognised Overseas Pension Schemes (QROPS).
Transitional Protections Comparison
| Protection Type | Protected Pot Limit | Lump Sum Allowance (LSA) | LSDBA Limit |
|---|---|---|---|
| Standard (No Protection) | £1,073,100 | £268,275 | £1,073,100 |
| Fixed Protection 2016 | £1,250,000 | £312,500 | £1,250,000 |
| Fixed Protection 2014 | £1,500,000 | £375,000 | £1,500,000 |
| Fixed Protection 2012 | £1,800,000 | £450,000 | £1,800,000 |
| Individual Protection 2016 | £1.0m to £1.25m | 25% of protected value | Protected value |
The Transitional Tax-Free Amount Certificate (TTFAC) Opportunity
For individuals who took pension benefits before 6 April 2024, HMRC applies a standard transitional deduction rule: it assumes that you took exactly 25% of your used LTA as tax-free cash. For example, if you used 80% of the £1,073,100 LTA, HMRC assumes you received £214,620 of tax-free cash, leaving only £53,655 of remaining LSA.
However, if your actual historical lump sums were less than 25% (as is common with defined benefit schemes or where income was taken without maximum cash), you can apply for a Transitional Tax-Free Amount Certificate (TTFAC). You must apply to a registered scheme administrator before taking your first post-6 April 2024 lump sum. Once issued, HMRC must use your actual monetary lump sums rather than the 25% assumption, potentially releasing tens of thousands of pounds in extra tax-free cash.
Frequently Asked Questions About Pension LSA & LSDBA
Frequently Asked Questions
Clear answers based on official HMRC rules and statutory guidance.
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A retirement scenario, not a promise
Choose realistic spending, inflation, investment and pension-access assumptions. A projected balance is a scenario rather than a guaranteed return or an entitlement forecast.
The lump-sum allowances, previous pension events, protections and the pension scheme rules may change what is tax free. Use your actual State Pension forecast and check the scheme access date.
Check the rules for your circumstances
Official guidance supports the rules described here; it does not approve or certify this calculator. Confirm dates, eligibility and unsupported cases before making a financial decision.