P53

Form P53: a small pot or trivial commutation lump sum

Small pots (up to £10,000 each, up to three of them) and trivial commutation lump sums are paid with 25% tax-free and the rest taxed at basic rate or on 1257L on a month 1 basis. P53 reclaims any tax overpaid.

Who it is for

The provider paid the pension as a small pot lump sum or a trivial commutation lump sum, and said so on the paperwork.
Tax was deducted from the taxable part.
You do not file a Self Assessment tax return for the year.

How to claim

1Complete P53 online (signed in) or print, sign and post it.
2Enter the lump sum and the tax deducted.
3List your other income for the year.
4Submit and keep a copy.

What happens next

HMRC works out the repayment and sends a payable order. Small pot lump sums do not trigger the Money Purchase Annual Allowance.

What to have ready

The P45 or payment statement from the provider.
Your National Insurance number and the provider’s PAYE reference.
Your other income for the year, including State Pension and any taxable benefits since 6 April.

Worth knowing

If the provider paid the small pot without deducting any tax and your income is under the allowance, there may be nothing to claim.

The form on GOV.UK

Claim a refund on a small pension lump sum, form P53 (GOV.UK)

Open the lump sum tool

P53, box by box

Every screen of the form, with what goes in each box, or shown as it looks on GOV.UK.

Your figures for the form

Type them in and the boxes below fill in. They are on the payslip or P45 your pension provider sent with the payment.

Total taken out of the pension

The gross payment, before tax, including any tax-free part.

How much of it was tax-free

Usually 25% of the payment. The provider’s paperwork shows it separately; the rest is the taxable part the form asks for.

Tax deducted by the provider

From the same payslip or P45.

Other income you expect this tax year

Pay, other pensions, State Pension and taxable benefits, before tax. Leave blank if none.

Done online

Form P53: claim a refund on a small pot or trivial commutation lump sum

For a small pot lump sum (a pot of £10,000 or less taken in one go) or a trivial commutation payment from a defined benefit scheme. The provider taxes it on a week 1 / month 1 basis; the P53 gets the difference back.

Run the calculator above and the payment, the tax taken off and your other income are filled in here.

Every box can be typed into, here or on the redrawn screens, and what you type stays in the box while you read the rest.

Show the pages as

Screen 1 of 5

About you

Your details as HMRC holds them. The National Insurance number is how the claim is matched to your record; check it against a payslip or your letter from HMRC.

Section
Full name
As HMRC has it. If you have changed your name, update HMRC first or the claim can be held up.
From your records
Section
National Insurance number
Two letters, six numbers, one letter, for example QQ 12 34 56 C. On payslips, your P60 and HMRC letters.
From your records
Section
Date of birth
Used with your National Insurance number to find your record.
From your records
Section
Address and postcode
Where HMRC should write to you. Online, the address on your record is shown and you can update it.
From your records
Section
Telephone number
Optional, but a daytime number lets HMRC resolve a query without writing.
From your records

Screen 2 of 5

The pension payment

From the payslip or P45 your pension provider sent with the payment. The gross figure and the tax taken off are the two that matter; everything else identifies the scheme.

Section
Pension provider’s name
The scheme or company that made the payment, as it appears on the payslip or P45.
From your records
Section
Pension provider’s PAYE reference
A three-digit tax office number, a slash and a reference (for example 123/AB456). It is printed on the payslip or P45 the provider sent.
From your records
Section
Date of the payment
The date the money was paid to you. It decides which tax year the payment falls in.
From your records
Section
Taxable part of the payment, before tax
The gross figure on the payslip or P45. If a quarter was paid tax-free (25%), enter only the taxable part: the provider’s paperwork shows it separately.
From your records
£
Section
Tax taken off the payment
From the same payslip or P45: what the provider deducted on 1257L on a month 1 basis.
From your records
£
Section
Type of lump sum
Small pot lump sum (a pot of £10,000 or less) or trivial commutation lump sum (from a defined benefit scheme). The provider’s letter says which.
From your records

Screen 3 of 5

Your other income for the tax year

Everything else you expect to receive between 6 April and 5 April, before tax. HMRC needs it to work out the tax really due for the year; you told the calculator £0. Leave a box empty if you have none of that kind.

Section
Pay from employment expected in the year
Total before tax from all jobs for the whole tax year, including what you have already been paid. Use your latest payslip’s year-to-date figure plus what is still to come.
From your records
£
Section
Tax expected to be deducted from that pay
The tax your employer will take off over the year. Leave empty if you have no job.
From your records
£
Section
Other pensions expected in the year
Private, workplace or annuity income for the whole year, before tax, not counting the payment you are claiming on.
From your records
£
Section
State Pension expected in the year
The weekly amount times the weeks you receive it in the tax year. It is paid without tax taken off, which is why HMRC needs it here.
From your records
£
Section
Taxable state benefits
Jobseeker’s Allowance, contribution-based Employment and Support Allowance, Carer’s Allowance or Incapacity Benefit expected in the year. Universal Credit and Child Benefit are not taxable and are left out.
From your records
£
Section
Savings interest and dividends
Interest outside ISAs and any dividends expected in the year. HMRC uses them to check your savings allowances.
From your records
£
Section
Pension contributions and Gift Aid
Personal pension contributions and Gift Aid donations you will make in the year. They can increase the refund if you pay higher rate tax.
From your records
£

Screen 4 of 5

How to pay the refund

Your own bank or building society account, so the refund arrives by transfer. Never give a claims company’s details: they take a cut of money you can claim free.

Section
Name on the account
Your own name, or a joint account you are named on.
From your records
Section
Sort code
Six digits, from your bank card or banking app.
From your records
Section
Account number
Eight digits. Building society accounts may also need a roll number.
From your records
Section
Pay the refund to someone else (nominee)
Leave empty. Naming a nominee is how claims companies get paid; there is no reason to use it for your own refund.
Put X
Ticked

Screen 5 of 5

Declaration and submit

Read the summary, confirm the figures are correct to the best of your knowledge, and submit. Online you get a confirmation reference at once; keep it.

Section
The information I have given is correct and complete to the best of my knowledge
Put X. Online this is a tick box before the submit button.
Put X
Ticked
Section
Signature and date
On the printed form only. Online, submitting is the signature.
From your records

What happens after you submit

HMRC works out the tax due on the lump sum on top of your other income and repays the difference, usually within 30 days. Small pot payments do not trigger the Money Purchase Annual Allowance, so your future pension saving is unaffected.

Claim a refund on a small pension lump sum, form P53 (GOV.UK)