Lump Sum Allowance (LSA) Calculator

What is the Lump Sum Allowance?

The Lump Sum Allowance (LSA) is the total amount of tax-free cash you can take from all your registered pension schemes combined during your lifetime. It replaced the Lifetime Allowance, which was abolished on 6 April 2024. For 2026/27 the standard LSA is £268,275 – exactly 25% of the old £1,073,100 Lifetime Allowance – and it was confirmed unchanged at the Autumn Budget 2025.

This calculator is for anyone approaching retirement who wants to know how much tax-free cash they can still take. Because the LSA applies across every pension you hold, it matters most if you have several pots, have already taken some tax-free cash, or hold one of the older HMRC protections (Fixed Protection 2016, Individual Protection, or Enhanced Protection) that give a higher personal limit. The tool tracks how much of your allowance is used, what is left, and whether any part of your next 25% lump sum would tip over the limit and become taxable.

How it works

• Your allowance: £268,275 by default, or £312,500 with Fixed Protection 2016. Individual Protection uses your own protected figure, and Enhanced Protection removes the cap entirely.
• Allowance used: every Pension Commencement Lump Sum (PCLS) and the tax-free 25% element of an Uncrystallised Funds Pension Lump Sum (UFPLS) counts against the LSA.
• Remaining = allowance − tax-free cash already taken.
• Max further tax-free cash = the lower of 25% of your new pot or your remaining allowance.
• Excess: if 25% of the pot is more than your remaining allowance, the surplus can still be drawn but is taxed at your marginal Income Tax rate.

Note: small pot lump sums (under £10,000) and trivial commutation lump sums do not use up your Lump Sum Allowance.

Worked example

Suppose you are about to access a £400,000 pension pot, and you have already taken £200,000 of tax-free cash from earlier pensions, with no protection.

• Standard allowance: £268,275
• Already used: £200,000 → 74.6% consumed
• Remaining allowance: £268,275 − £200,000 = £68,275
• 25% of the new pot: £400,000 × 25% = £100,000
• Max further tax-free cash: the lower of £100,000 or £68,275 = £68,275
• Excess taxed at marginal rate: £100,000 − £68,275 = £31,725

So £68,275 comes out tax-free and the remaining £31,725 of the 25% is added to your taxable income for the year.

Frequently asked questions

How much is the Lump Sum Allowance in 2026/27?

The standard Lump Sum Allowance is £268,275. It applies across all your pensions combined and was confirmed unchanged at the Autumn Budget 2025.

What counts towards my Lump Sum Allowance?

Tax-free cash counts: the Pension Commencement Lump Sum (PCLS) and the tax-free 25% element of an Uncrystallised Funds Pension Lump Sum (UFPLS). Small pot and trivial commutation lump sums do not.

What happens if I exceed the Lump Sum Allowance?

You can still take the money, but any amount above your remaining allowance is taxed at your marginal Income Tax rate instead of being tax-free.

Does protection give me a higher allowance?

Yes. Fixed Protection 2016 gives a £312,500 LSA, Individual Protection gives a personalised figure based on your 5 April 2016 pension value, and Enhanced Protection can remove the cap. Use the protection dropdown above to model your situation.

Source: HMRC Pensions Tax Manual (PTM174100), gov.uk – Lump sum allowance availability. Figures verified for the 2026/27 tax year. This tool is for guidance only and is not financial advice.

Related tools: Pension Lump Sum Tax Calculator, PCLS Calculator, Pension Pot Calculator, Salary Calculator, All UK Calculators.