Small pension pots: UK cashing-in rules
A guide to taking small UK pension pots, the £10,000 limit, small-pot exceptions, tax and the difference from trivial commutation.
Last reviewed 4 September 2026
Frequently asked questions
Can I take more than three small pots?
The three-pot limit generally applies to non-occupational arrangements. There is not usually the same numerical cap for qualifying occupational scheme small pots.
Does a small-pot payment trigger the MPAA?
Not if it meets the statutory small-pot conditions.
Is a £10,000 small-pot payment tax-free?
Usually only 25% is tax-free; the balance is taxed as pension income, subject to your circumstances.