What is an uncrystallised funds pension lump sum (UFPLS)?

An uncrystallised funds pension lump sum (UFPLS) is a payment that can be made from any part of your SIPP that you have not previously accessed.

Each lump sum has a 25% tax free portion, with the remaining 75% subject to income tax. Please note that we may need to tax these payments using an emergency code until we receive a tax code from HMRC and this may result in you paying a large amount of tax. For more information see our taxation of pensions page.

You can take single or ad-hoc UFPLS payments of up to 100% of the whole fund, or a series of regular UFPLS payments. Any funds you do not withdraw will remain invested within the tax free SIPP wrapper. There is no limit on the amount of income you can take but if you are reliant on the income from your pension to support you, you should consider taking a level of income that is sustainable for your lifetime.

Once you take an UFPLS from your SIPP, the amount you can contribute each year to your SIPP (and any other money purchase pensions) is restricted to £4,000 per annum. This is known as the money purchase annual allowance (MPAA). For more information see our pension contribution rules page.


Jo has a SIPP valued at £100,000 which she hasn't yet accessed. She chooses to take an ad hoc UFPLS payment of £10,000 gross. Jo will receive one lump sum payment, £2,500 of which will represent the tax free element, and the balance will be subject to income tax.

The remaining £90,000 of her SIPP will remain untouched and invested within the SIPP wrapper.