UK rules · pension.lump_sum_allowances
Tax-free lump sum allowances
The 25% tax-free rule, the lump sum allowance and the lump sum and death benefit allowance.
Validated v1UKIn force 6 April 2024 onwards
| tax free fraction | 25% |
| lump sum allowance | £268,275 |
| lump sum and death benefit allowance | £1,073,100 |
“You can usually take up to 25% of the amount built up in any pension as a tax-free lump sum. The most you can take is £268,275. ... a tax-free lump sum of up to £1,073,100 ... lump sum and death benefit allowance.”
Source: HMRC: www.gov.uk/tax-on-your-private-pension/lump-sum-allowance · checked 6 October 2026 · page last updated 8 November 2024
Version history
No changes have been published since the dataset was first verified.