UK pension & tax rates 2026/27

Standard annual allowance

£60,000

Taper — threshold income gate

£200,000

Taper — adjusted income gate

£260,000

Taper — reduction

£1 for every £2of adjusted income over £260,000

Tapered allowance floor

£10,000

Money purchase annual allowance (MPAA)

£10,000

Relief limit — basic amount

£3,600gross; relief is available on the greater of this and relevant UK earnings (relief-at-source schemes)

DB revaluation — prior-September CPI

3.8%applied to the DB opening value (FA 2004 s.235)

Lump Sum Allowance (LSA)

£268,275

Lump Sum & Death Benefit Allowance (LSDBA)

£1,073,100

LSA / LSDBA — Fixed Protection 2012

£450,000 / £1,800,000

LSA / LSDBA — Fixed Protection 2014

£375,000 / £1,500,000

LSA / LSDBA — Fixed Protection 2016

£312,500 / £1,250,000

Enhanced and primary protection carry their own transitional ceilings. ParaplanAI’s calculators do not calculate a lump sum for a member with enhanced protection. Nor do they calculate an uncrystallised funds pension lump sum for one with primary protection, or a primary protection pension commencement lump sum above the standard lump sum and death benefit allowance still available, and they stop where they cannot count a primary protection member’s benefits taken before 6 April 2024, for example when lump sum protection is also registered. Confirm those with the scheme administrator.

Personal allowance

£12,570

Personal allowance — withdrawn from

£100,000£1 for every £2 of adjusted net income; nil at £125,140

Basic rate — 20%

first £37,700of taxable income

Higher rate — 40%

£37,700 to £125,140

Additional rate — 45%

over £125,140

Personal savings allowance (basic / higher / additional)

£1,000 / £500 / £0

Starting rate for savings

0% on up to £5,000eroded £1-for-£1 by non-savings taxable income

Dividend allowance

£500

Dividend rates (ordinary / upper / additional)

10.75% / 35.75% / 39.35%

Inside top-slicing relief the personal allowance is recalculated at the annual-equivalent slice (FA 2020), and for gains from 6 April 2021 the PSA and starting rate for savings are recalculated there too (IPTM3820).