Your inputs
Estimated net proceeds
£0
Waiting for a pension withdrawal read.
What this means
This tool separates tax-free cash from the taxable element, then stacks the taxable slice on top of your other income for the year.
Professional read
The tool uses rest-of-UK 2026/27 income tax rates and assumes the withdrawal is authorised and taxed in the year you take it.
Comparing the gross pension withdrawal with your bank receipt and forgetting that only the tax-free slice is untouched by income tax.
If the taxable slice tips you into higher-rate tax, test smaller staged withdrawals or compare the year-end result with other income already expected.
Scottish taxpayers, protected tax-free cash, emergency PAYE month-one codes, and DB/annuity cases need a more tailored review than this first-pass tool.
Methodology and source basis
Built around HMRC 2026/27 PAYE thresholds and GOV.UK pension-withdrawal guidance. It uses the standard Personal Allowance, the 25% tax-free cash rule where available, and the 20% / 40% / 45% rest-of-UK income tax bands.
| Reference | Why it matters |
|---|---|
| GOV.UK pension tax-free rules | The usual 25% tax-free rule and the current lump sum allowance framing. |
| GOV.UK tax on pension | Confirms that the taxable slice is added to your annual income and taxed through the normal income tax system. |
| HMRC 2026/27 rates and thresholds | Source for the standard 2026/27 Personal Allowance and rest-of-UK income tax bands used here. |