Free tool · 2026/27

Pension withdrawal tax estimator

See how much tax could be taken from a pension withdrawal under an emergency tax code, how much you should actually owe for the year, and which HMRC form gets the difference back. It works for any provider.

Information only, not advice. This is an estimate using 2026/27 rates and a simplified Month 1 calculation. The code your provider uses, and your own tax position, may differ.

Worked example: a £20,000 UFPLS with no other income

Tax-free part (25%): £5,000.00; taxable part: £15,000.00
Tax taken under an emergency code (1257L Month 1): £5,128.88
What you would receive: £14,871.13
Tax this withdrawal adds to your 2026/27 bill: £486.00
Likely over-payment to reclaim: £4,642.88, using form P55

Why a first withdrawal is often over-taxed

When you first take taxable money from a pension, your provider usually has no tax code for you, so it uses an emergency code on a Month 1 basis. That treats the payment as if you will be paid the same amount every month: only one-twelfth of the personal allowance is tax-free, and one-twelfth of each tax band applies. A one-off withdrawal therefore reaches the higher and additional rates far sooner than it would across a whole year.

If you take more regular or flexible payments later in the same tax year, HMRC normally sends your provider a corrected tax code and the over-payment comes back through those payments. If you do not, you can claim it with one of these forms, or wait for HMRC to put it right after the tax year ends:

P55: when you took part of your pot and will not take any more regular or flexible payments this tax year. Claim back tax on a flexibly accessed pension overpayment (P55)
P53Z: when you emptied your pot and still have other taxable income, such as a salary, another pension or the State Pension. Claim a tax refund when you've flexibly accessed all of your pension (P53Z)
P50Z: when you emptied your pot, have stopped work and do not expect to go back, and have no other pension or taxable benefits. Claim a tax refund if you've stopped work and flexibly accessed all of your pension (P50Z)

What this estimate assumes

2026/27 rates: the £12,570 personal allowance, reduced by £1 for every £2 of income over £100,000.
Month 1 is one-twelfth of the allowance and bands. HMRC's tables use code 1257L and round to the pound, so the actual deduction can differ by a few pounds.
This is the first taxable payment from this pension in the tax year, and the provider has no P45 or tax code for you.
For a UFPLS, you have enough Lump Sum Allowance left for 25% to be tax-free.
Your other income is earnings or pension income. Savings interest and dividends are taxed under different rules.
Taking taxable money flexibly also triggers the Money Purchase Annual Allowance.

Related tools and guides

Drawdown calculator: how long a pot could last at your withdrawal rate.
Emergency tax explained, with the P55, P53Z and P50Z forms.
Compare drawdown platforms on what they charge for UFPLS and ad-hoc withdrawals.

Sources

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.