Pension drawdown glossary
The code HMRC gives your employer or pension provider to work out how much tax to take. 1257L is the most common: it gives the standard personal allowance. A code ending in W1, M1 or X is an emergency code.
Source: GOV.UK: tax codes · Last reviewed 24 September 2026
See every term in the A–Z glossary. Definitions are general information for the 2026/27 tax year, not personal advice.
Important: The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and benefits depend on individual circumstances. This is not financial advice.