What is the pension annual allowance for 2026/27?

£60,000 as standard. It tapers for high earners to a £10,000 floor, and is replaced by the £10,000 money purchase annual allowance once a defined-contribution pot is flexibly accessed.

What is the lump sum allowance for 2026/27?

The standard Lump Sum Allowance is £268,275 and the Lump Sum and Death Benefit Allowance is £1,073,100. Members with Fixed Protection 2016 keep higher figures (£312,500 and £1,250,000).

When does the tapered annual allowance start for 2026/27?

Only when threshold income exceeds £200,000 and adjusted income exceeds £260,000. Above the adjusted-income gate the allowance falls by £1 for every £2, down to the £10,000 floor.

← Learn/Reference · Rates and allowances

Pension and bond tax rates and allowances 2026/27

The figures a paraplanner looks up: the annual allowance and taper, the MPAA, the post-LTA lump-sum allowances, and the income-tax and savings bands for 2026/27.

Read directly from the engine's verified 2026-27-v1.4 tax-year configuration (HMRC sources in the table footnotes).

5 min read · Last reviewed 19 Jun 2026

A single place for the figures a paraplanner looks up most often. Everything below is read at build time from the engine’s verified configuration for 2026/27 — the exact constants the calculators compute against — so this page cannot quietly disagree with a result the tools produce, and it refreshes automatically when a new tax-year config is published.

Annual allowance and pension funding

Pension annual allowance — 2026/27

Standard annual allowance: £60,000
Taper — threshold income gate: £200,000
Taper — adjusted income gate: £260,000
Taper — reduction: £1 for every £2 over the adjusted-income gate
Tapered allowance floor: £10,000
Money purchase annual allowance (MPAA): £10,000

The standard allowance is £60,000. The taper applies only once both income gates are cleared, then reduces the allowance £1 for every £2 of adjusted income above £260,000, to a £10,000 floor. Flexibly accessing a defined-contribution pot triggers the £10,000 MPAA. Run a position on the annual allowance, tapered allowance and MPAA calculators. (PTM055100 · PTM057100 · PTM056510.)

Lump sum allowances (post-LTA)

Lump sum allowances — 2026/27

Lump Sum Allowance (LSA): £268,275
Lump Sum & Death Benefit Allowance (LSDBA): £1,073,100
LSA — Fixed Protection 2016: £312,500
LSDBA — Fixed Protection 2016: £1,250,000

Since 6 April 2024 the lifetime allowance is replaced by two tax-free-cash ceilings: the £268,275 LSA and the £1,073,100 LSDBA, with higher figures for protected members. Amounts above an allowance are taxed at the recipient’s marginal rate. Use the LSA and LSDBA calculators, or read the lump sum allowances guide. (FA 2024 Sch 9 · PTM171000 · PTM172000 · PTM176400.)

Income tax and savings (rest-of-UK)

Income tax & savings bands — 2026/27 (rUK; Scottish rates differ)

Personal allowance: £12,570
Personal allowance — abated from: £100,000
Basic-rate band (above the PA): £37,700
Additional-rate threshold: £125,140
Basic / higher / additional rate: 20% / 40% / 45%
Personal savings allowance (basic / higher / additional): £1,000 / £500 / £0
Starting rate for savings band: £5,000
Dividend allowance: £500
Dividend rates (ordinary / upper / additional): 10.75% / 35.75% / 39.35%

These are the figures that drive a bond chargeable-event-gain and top-slicing-relief computation — the personal allowance and its abatement above £100,000, the band thresholds, and the savings allowances that are recalculated inside the relief for gains from 6 April 2021. The personal savings allowance is £1,000 for a basic-rate taxpayer, £500 at higher rate and nil at additional rate. Scotland sets its own income-tax bands (not modelled here). See the top-slicing relief calculator. (ITA 2007; rates per the config provenance.)

DB revaluation

Defined-benefit opening-value revaluation — 2026/27

September CPI used to revalue the DB opening value: 3.8%

A defined-benefit pension input amount revalues the opening capital value by the prior September’s CPI before subtracting it from the closing value (FA 2004 s.235). For 2026/27 that figure is 3.8%. The DB pension input amount calculator applies it, and the DB-PIA guide works it through. (PTM053301 · FA 2004 s.235 · ONS series D7G7.)

These figures are read from the engine’s 2026-27-v1.4 configuration, HMRC-verified on 2026-06-10; every calculation the tools run stamps the same config version for audit. For planning and illustration only; this reference does not constitute financial or tax advice.

PTM055100 · PTM057100 · PTM056510 · PTM171000 · PTM172000 · PTM053301 · FA 2024 Sch 9 · FA 2004 s.235 · ITA 2007

Common questions

What is the pension annual allowance for 2026/27?: £60,000 as standard. It tapers for high earners to a £10,000 floor, and is replaced by the £10,000 money purchase annual allowance once a defined-contribution pot is flexibly accessed.
What is the lump sum allowance for 2026/27?: The standard Lump Sum Allowance is £268,275 and the Lump Sum and Death Benefit Allowance is £1,073,100. Members with Fixed Protection 2016 keep higher figures (£312,500 and £1,250,000).
When does the tapered annual allowance start for 2026/27?: Only when threshold income exceeds £200,000 and adjusted income exceeds £260,000. Above the adjusted-income gate the allowance falls by £1 for every £2, down to the £10,000 floor.

Sources & grounding

Every figure is read at build time from the engine's versioned tax-year configuration 2026-27-v1.4 (app/calc-engine/configs/2026-27.json), HMRC-verified 2026-06-10 — the same constants the calculators compute against, so the table cannot drift from the engine.
Annual allowance / taper / MPAA: PTM055100 (standard AA), PTM057100 (taper gates + floor), PTM056510 (MPAA) — config fields standardAnnualAllowance / taperThresholdIncome / taperAdjustedIncome / taperFloor / mpaaAmount.
Lump-sum allowances: FA 2024 Sch 9; PTM171000 (LSA), PTM172000 (LSDBA), PTM176400 (FP2016 ceilings) — config fields lsaAmount / lsdbaAmount / protectionCeilings.FP2016.
Income tax + savings: ITA 2007 (personal allowance + abatement, basic-rate band, savings allowances, starting-rate band); dividend rates per the config verifiedAgainst (Autumn Budget Nov 2025, ordinary/upper raised 2pp from 6 Apr 2026) — config fields personalAllowance / basicRateBand / additionalRateThreshold / personalSavingsAllowance* / startingRateBand / dividend*.
DB revaluation: FA 2004 s.235 / PTM053301 — priorSeptemberCPI (the September figure used to revalue a DB opening value), ONS series D7G7.

For planning and illustration purposes only. Verify all inputs against source documents. This explainer does not constitute financial or tax advice.