Pension drawdown glossary
A way to take a small defined benefit or scheme pension as a one-off lump sum when the total value of your pension savings is £30,000 or less. Where the pension has not yet started, 25% is usually tax-free.
Source: HMRC Pensions Tax Manual PTM063500: trivial commutation lump sum · 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.