Help Centre/Tax & Pensions/Withdrawal strategies: PCLS vs UFPLS

Withdrawal strategies: PCLS vs UFPLS

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Summary

PCLS (Pension Commencement Lump Sum) draws your tax-free allowance first; everything after is fully taxable.
UFPLS (Uncrystallised Funds Pension Lump Sum) splits each withdrawal 25% tax-free / 75% taxable until the Lump Sum Allowance is used up.
Switch between them in the Withdrawals tab.

PCLS vs UFPLS

PCLS (Pension Commencement Lump Sum) — tax-free allowance is drawn first. Once exhausted, all further withdrawals are fully taxable. This front-loads the relief.

UFPLS (Uncrystallised Funds Pension Lump Sum) — each withdrawal is split 25% tax-free / 75% taxable until the Lump Sum Allowance is used up. This spreads relief across every withdrawal.

Switch between these in the Withdrawals tab.

Frequently asked questions

What's the key difference between PCLS and UFPLS?

PCLS draws your tax-free lump sum allowance first, so everything after is fully taxable. UFPLS splits each withdrawal 25% tax-free / 75% taxable instead, spreading the relief across every withdrawal.

Where do I switch between them?

In the Withdrawals tab — see How to set up your withdrawal strategy.

More in Tax & Pensions

How pension tax relief works The £100k personal allowance taper Scottish tax rates Inheritance Tax (IHT) planning

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