We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

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.

More information about the Lifetime Allowance

Still need help?

Contact us

Email us