Small Pots - PCLS rules

Hi, can you advise if I take a small pot of under £10k, does the 25% tax free amount from the small pot come off the PCLS amount of my main pension or are they considered separate meaning I can keep my 25% LTA PCLS intact for longer?

Hi chantey_puckers,

Detailed guidance on the implications of taking  'small pot' lump sums is provided at:
 Tax when you get a pension

Thank you.
 

Thanks, but that information is out of date. "You can usually take up to 25% of the amount built up in any pension as a tax-free lump sum. This is limited to a maximum of 25% of your available lifetime allowance. For most individuals, the standard lifetime allowance applies. This is currently £1,073,100." The LTA was scrapped in the budget. Shame that HMRC can't supply accurate information, who else can I ask!

Hi chantey_puckers, 

See further guidance here:

Lifetime allowance guidance newsletter — March 2023

Thank you.