Home/UK/Pension Calculator
UK Pension Rules 2026/27 • LSA £268,275

UK Pension & 25% Tax-Free Lump Sum Calculator

Check how much tax-free cash may be available from a UK pension, understand the £268,275 standard Lump Sum Allowance, and screen your 2026/27 Annual Allowance, MPAA, tapering and carry-forward position.

Check Your UK Pension Tax-Free Cash and 2026/27 Contribution Limits

Use this calculator to estimate your tax-free pension cash, check your remaining Lump Sum Allowance, and screen your 2026/27 Annual Allowance position if you live in the UK or abroad. It also highlights QROPS, overseas-tax and State Pension issues that can matter to expats.

Pension Pot & Tax-Free Cash Evaluator

Combined value of SIPP & Workplace pensions
Include employee and employer contributions for Annual Allowance purposes.
Relevant previous lump sums can reduce your remaining Lump Sum Allowance.
Leave at £268,275 if you do not have a protected higher allowance.
Enter only genuine unused allowance available under the carry-forward rules for the previous 3 tax years.

How UK Pension Tax Works for Expats

Living outside the UK does not automatically remove UK tax from a UK pension. Depending on your residence, the pension type and the tax treaty with your country, the UK and your country of residence can have taxing rights. A Double Taxation Agreement may allocate taxing rights or provide relief, but the exact result is treaty-specific.

Private pension
UK pension withdrawals may be taxable in the UK, overseas, or under treaty rules.
State Pension
It can generally be paid abroad, but annual uprating depends on the country where you live.
QROPS
Overseas transfers can trigger a 25% Overseas Transfer Charge unless a statutory exception applies.

Tax-Free Cash Is a Lifetime Personal Allowance

The standard Lump Sum Allowance is £268,275 for 2026/27. It is not a fresh £268,275 allowance for each pension pot. Relevant tax-free lump sums from across your registered pension arrangements can use the same personal allowance.

Previous withdrawals matter: If you have already taken relevant tax-free lump sums since 6 April 2024, your remaining Lump Sum Allowance may be lower. Protected allowances can also increase the available amount.

Annual Allowance: Do Not Confuse Three Different Limits

£60,000 Annual Allowance
Standard 2026/27 Annual Allowance before tapering, MPAA or carry-forward.
£10,000 MPAA
A separate lower allowance can apply after certain flexible access to a money-purchase pension.
100% Earnings Rule
This generally concerns tax relief on personal contributions rather than replacing the Annual Allowance.
High earners: For 2026/27, tapering can apply where threshold income exceeds £200,000 and adjusted income exceeds £260,000. The minimum tapered Annual Allowance is £10,000.

QROPS & the 25% Overseas Transfer Charge

A transfer from a registered UK pension to a QROPS can be subject to a 25% Overseas Transfer Charge. The charge does not apply where one of the statutory conditions is met.

  • The QROPS is an occupational pension scheme in which you were an employee of a participating employer.
  • The QROPS is a qualifying overseas public-service pension scheme in which you were an employee.
  • The QROPS is established by an international organisation and you were its employee.
  • You are resident in the same country where the QROPS is established.
  • You are resident in the UK, Gibraltar or EEA and the QROPS is established in Gibraltar or the EEA.
Transfer warning: QROPS transfers can involve complex residence, scheme-location and reporting rules. This page does not determine whether a particular transfer is exempt from the Overseas Transfer Charge.

State Pension While Living Abroad

The UK State Pension can generally be paid abroad. However, annual increases are normally paid only when you live in the EEA, Switzerland, Gibraltar or a country with a relevant UK social-security agreement. Canada and New Zealand do not currently receive those annual increases under the UK rules.

The country where you live can also affect how your State Pension is taxed. Your local law and the UK tax treaty may determine which country taxes the pension or how double-tax relief works.

Frequently Asked Questions (6 FAQs)

Usually you can take up to 25% of your pension benefits as tax-free cash, subject to your available Lump Sum Allowance. The standard individual Lump Sum Allowance is £268,275 for 2026/27, but protected allowances or previously-used allowance can change the amount actually available.

Not necessarily. The standard Annual Allowance is £60,000 for 2026/27, but it can be reduced by the tapered Annual Allowance for some high earners or by the Money Purchase Annual Allowance after certain flexible pension access. Unused allowance from the previous 3 tax years may also be carried forward. The separate 100% of taxable earnings rule concerns the normal limit for obtaining tax relief on personal contributions.

A UK pension may be taxable in the UK, in your country of residence, or potentially by both subject to the applicable Double Taxation Agreement. The treaty for your country determines which country can tax the pension and whether relief is available. You should not assume that becoming non-UK resident makes a UK pension automatically UK tax-free.

Yes. The UK State Pension can generally be paid overseas. However, annual State Pension increases are normally paid only if you live in the EEA, Switzerland, Gibraltar or a country with a qualifying UK social-security agreement. Canada and New Zealand are notable exceptions where annual increases are not normally paid.

The Overseas Transfer Charge is generally 25% of a taxable overseas pension transfer. A transfer to a QROPS can avoid the charge when one of the specified statutory conditions is met, such as the member being resident in the same country where the QROPS is established, certain occupational or public-service arrangements, or qualifying UK/Gibraltar/EEA residence and scheme-location combinations.

The Lifetime Allowance was abolished from 6 April 2024. It was replaced by the Lump Sum Allowance and Lump Sum and Death Benefit Allowance framework. The standard 2026/27 allowances are £268,275 and £1,073,100 respectively, although protected allowances and previous benefit crystallisation can affect an individual's available amounts.
Official SourcesOfficial UK Government References & Legal Sources
Live Expat FX Tool 0% Hidden Spread
International Money Transfer & FX Rates

Sending funds for tuition, rent, or immigration fees? Retail banks sneak 2.5%–4% into exchange rates. Check today's real mid-market rate first.

High-Street Banks:~3.5% Hidden Markup
Wise Mid-Market:Zero Markup (Google Rate)
Compare Live Exchange Rate
⚡ Free live comparison • 50+ currencies supported
⭐ UK Pension Security 256-Bit Encrypted
Manage UK Pensions & SIPP Portals from Abroad

Connect through a dedicated UK IP to access HMRC pension forecasts, SIPP brokerage accounts, and annuity portals securely.

Expat Special:Up to 71% Off + 3 Mos Free
Starting At:$3.19 / month
Secure Pension Access
🛡️ Risk-free • 30-day money-back guarantee
Pension Allowances 2026/27
Lump Sum Cap (LSA)£268,275
Annual Contribution£60,000 / yr
Death Benefit Cap (LSDBA)£1,073,100