How does tax-free cash from a pension work?
The vast majority of pension schemes, including the HL SIPP, entitle you to take up to 25% of the scheme's value as a tax-free lump sum at the point that you take benefits (referred to as "crystallising" the pension). It is potentially possible to crystallise less than the full value of a pension scheme, in which case your entitlement to tax-free cash will be 25% of the value being crystallised. Some pension schemes may entitle you to different amounts of tax-free cash; check with the pension administrator if you are not sure. You are not able to take tax-free cash if you have exceeded your Lifetime Allowance.