UK Lump Sum Allowance (LSA) rules from 6 April 2024
Effective 6 April 2024, the UK abolished the Lifetime Allowance (LTA) and introduced two main limits: the Lump Sum Allowance (LSA) of £268,275 and the Lump Sum and Death Benefit Allowance (LSDBA) of £1,073,100.
The LSA caps the cumulative tax-free cash lump sums you can receive in your lifetime. Any lump sum taken above your available LSA is subject to income tax at your marginal rate.
Worked example: LSA calculation on a £300,000 pot
A member with no prior lump sums requesting full 25% tax-free cash from a £1,200,000 pot can take £268,275 tax-free (the maximum statutory LSA). The remaining £31,725 of the 25% entitlement exceeds the LSA and is taxed as ordinary income at their marginal tax rate.
Inputs for the lump sum allowance (lsa) calculator
Requested Lump Sum & Protections
Enter the lump sum requested and select any valid HMRC protections (Fixed Protection 2012/2014/2016).
CALCULATOR QUESTIONS
UK LSA calculator questions
What is a Transitional Tax-Free Amount Certificate (TTFAC)?
A TTFAC allows members who took less than 25% tax-free cash under pre-6 April 2024 crystallisations to prove their actual monetary lump sums received, preserving more of their £268,275 LSA.
Do protected allowances increase the LSA?
Yes, members holding Fixed Protection 2012, 2014, or 2016 have protected LSA caps of £450,000, £375,000, and £312,500 respectively.