UK pension & tax rates 2025/26

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 without earnings — basic amount

£3,600gross, for members with no relevant UK earnings

DB revaluation — prior-September CPI

1.7%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 — the LSA and LSDBA calculators apply them per certificate.

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Personal allowance — withdrawn from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

Starter rate — 19%

£0 to £2,827of taxable income

Scottish basic rate — 20%

£2,827 to £14,921of taxable income

Intermediate rate — 21%

£14,921 to £31,092of taxable income

Higher rate — 42%

£31,092 to £62,430of taxable income

Advanced rate — 45%

over £62,430of taxable income, until the top rate applies

Top rate — 48%

over £125,140of income — the personal allowance is nil at this level

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)

8.75% / 33.75% / 39.35%

The PSA and the starting rate for savings are the two allowances recalculated inside top-slicing relief for gains from 6 April 2021 (IPTM3820).

Employee — primary threshold

£12,570

Employee — upper earnings limit

£50,270

Employee — main / upper rate

8% / 2%

Employer — secondary threshold

£5,000

Employer — rate

15%

Child Benefit (weekly, first / additional child)

£26.05 / £17.25

HICBC — starts at adjusted net income

£60,000

HICBC — clawback

1% per £200of adjusted net income over £60,000; full charge at £80,000

Tax-Free Childcare — annual cap (per child / disabled child)

£2,000 / £4,000

Eligibility cliff — adjusted net income

£100,000either parent over the cliff loses Tax-Free Childcare and the extended funded hours

The value of funded hours varies by age, local authority and provider — the tax-trap calculator prices it as a labelled estimate.

Trust rate

45%

Trust dividend rate

39.35%

CGT annual exempt amount

£3,000

CGT rates (basic / higher)

18% / 24%

ISA annual subscription limit

£20,000

ParaplanAI does not compute CGT — these figures sit in the reference for the wrapper comparison.