Glossary · UK
What is Lump Sum Allowance (LSA)?
Max £268,275 tax-free cash you can take across all pensions in your lifetime.
Full Definition
The Lump Sum Allowance (LSA) is the maximum tax-free cash you can take across all your pensions in your lifetime. £268,275 in 2025/26 — equal to 25% of the abolished Lifetime Allowance (£1,073,100). Replaced the LTA when it was abolished in April 2024. Companion to the Lump Sum and Death Benefit Allowance (LSDBA, £1,073,100). The first 25% of any pension drawdown is tax-free up to this LSA limit. After LSA exhausted, further withdrawals are taxed as income.
Related Calculators
Read More
See Also
Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.