{"$schema":"https://schema.org/Dataset","name":"UK pension and tax rates and allowances 2025-26","taxYear":"2025-26","source":{"publisher":"ParaplanAI","url":"https://www.paraplanai.co.uk/rates/2025-26","landing":"https://www.paraplanai.co.uk/rates","configVersion":"2025-26-v1.14","verifiedDate":"2026-07-03","verifiedAgainst":"HMRC Income Tax rates 2025-26; FA 2025 (AA £60k, taper floor £10k, MPAA £10k, ART £125,140 retained); IPTM3820 / HMRC Agent Update 83 (2021) (Bond PSA recalc); FA 2024 Sch 9 (LSA £268,275, LSDBA £1,073,100); HMRC PTM171000, PTM172000, PTM092100 (FP2016); priorSeptemberCPI=1.7% (Sept 2024, ONS series D7G7 dataset MM23) per FA 2004 s.235(3) / PTM053301 DB-PIA opening-value revaluation (ADR-027); dividend rates 8.75%/33.75%/39.35% + £500 allowance (ITTOIA 2005 Part 4 Ch 3, gov.uk/tax-on-dividends); trust rate 45% / dividend trust rate 39.35% (ITA 2007 s.9; IPTM3250); HICBC threshold £60,000 / 1% per £200 / 100% at £80,000, Child Benefit £26.05 eldest + £17.25 additional weekly (ITEPA 2003 s.681B-H; gov.uk/child-benefit-tax-charge + gov.uk/child-benefit-rates, verified 2026-06-01); trust GBP500 de-minimis - trustees' net income <= GBP500 treated as GBP0, cliff edge above, GBP100 floor per settlement (ITA 2007 s.24B inserted by F(2)A 2023 Sch 2; s.491 standard rate band repealed from 2024-25); employee Class 1 NIC primary threshold GBP12,570 / UEL GBP50,270 / main rate 8% / additional rate 2% (gov.uk/national-insurance-rates-letters; HMRC NIM01001, verified 2026-06-23); employer (secondary) Class 1 threshold GBP5,000 / rate 15% from 6 April 2025 (NICs (Secondary Class 1 Contributions) Act 2025; gov.uk Rates and thresholds for employers 2025 to 2026; SSCBA 1992 s.9, verified 2026-06-23); Tax-Free Childcare top-up GBP2,000/child (GBP4,000 disabled) + GBP100,000 either-parent ANI cliff (gov.uk/tax-free-childcare); funded-hours estimate uses DfE national average funding rate GBP6.12/hr for 3-4 year-olds (gov.uk/government/publications/early-years-funding-2025-to-2026) x 15 hrs/wk x 38 wks - a LABELLED ESTIMATE that varies by child age, local authority and provider, not a statutory figure; Scottish non-savings bands 2025-26 starter 19%/basic 20%/intermediate 21%/higher 42%/advanced 45%/top 48%, thresholds GBP15,397/27,491/43,662/75,000/125,140 (gov.scot/publications/scottish-income-tax-rates-and-bands, standard PA GBP12,570; savings+dividends UK-wide); W7/ADR-051 (2026-07-01): FA 2004 s.227ZA(1)(b) MPAA alternative chargeable-amount gate (money-purchase input sub-total must exceed the MPAA), s.228A(8) carry-forward substitution in an MPAA year (PTM055100), s.228ZA(2) annual-allowance taper reduction floors to the nearest whole GBP1 (not the nearest penny); W9/ADR-049 (2026-07-01): pre-2024 LSA/LSDBA transitional previously-used amount revalues to the GBP1,073,100 basis using the exact s.219(4)/(5) fraction at the historic BCE date (FA 2024 Sch 9 para 129(4A)), not the 2dp-percent shortcut; SIH_pre75 default-side LSA deduction is 25% of the revalued amount, not zero (FA 2024 Sch 9 para 125(3)). W1/D1-D3 (2026-07-01): ITA 2007 s.12/s.23/s.16 SRB erosion base corrected to the ACTUAL (post-taper) personal allowance (not the untapered config figure); PSA (ss.12A-12B, s.10(3A), s.58(2)) now tested against taxable income and the EXTENDED higher/additional-rate limits (Gift Aid/RAS band extension + s.58(2) ANI default), with the additional-rate test strict '>' rather than '>='. W2/A1/A4 (2026-07-01): ITTOIA 2005 s.531(1) express carve-out — the s.530(1) deemed basic-rate credit now applies within the top-slicing relief calculation for offshore bonds too (not just onshore); s.530(3)-(5) restricts the credit (both bond types) to the gain/slice less any unused personal allowance, replacing the previous flat 20% x gain formula. W3/A2 (2026-07-01): ITTOIA 2005 s.536(1) Step 1 / IPTM7560 - N for top-slicing relief is a pure pass-through of complete 12-month periods from policy commencement to the event (no same-tax-year-straddle +1); ADR-048 supersedes ADR-012, whose N+1 reading had no statutory basis.. Calc-correctness remediation 2026-07-01 (W14, findings F1/IC-3, no numeric config value changed): FA 2004 s.233(1)(b) — the salary-sacrifice AA test now counts the full employer contribution reaching the pension (sacrifice + any employer-NI passback), not the raw sacrifice; FA 2004 s.228ZA(4)/(5)/PTM057100 — the pension advanced form's taper-toggle-OFF earnings proxy now always applies the salary-sacrifice add-back to both threshold and adjusted income. W8/B3 (2026-07-02, no numeric value changed): FA 2004 s.228A(5)(b)/(6)/(7) - carry-forward now runs a sequential intra-window set-off ledger across the supplied prior-year evidence: an intervening year's own breach (that year's PIA exceeding that year's own applicable AA) is automatically covered by carry-forward from even older years, oldest-first, BEFORE any of it can reach the target year, replacing the prior each-year-in-isolation computation.; W4/A3 successive part-surrender excess N per ITTOIA 2005 s.536(1) Step 1 second limb + IPTM7560 (N = complete insurance years since the previous calculation event; from-commencement when none or a pre-6-April-2013 foreign policy) W11/C2/C7/C8/ADR-053 (2026-07-02): FA 2024 Sch 9 para 126(1)(c) - Enhanced Protection LSDBA is the value of uncrystallised rights on 5 April 2024 (FA 2004 Sch 36 paras 12(3A)/12A via SI 2024/1012; s.212), not an unlimited sentinel; para 125(1)(c) - EP holders with a registered lump sum protection use the protected-percentage-of-5-April-2023-pot entitlement, those without use the GBP375,000 base less the 25% transitional deduction (PTM174400 Fabian GBP342,500); para 125(3A)/126(3A) - the Primary Protection transitional deduction is capped at GBP375,000 (PTM174500 Petra/Krishna); PP LSDBA = GBP1,800,000 x (1 + certificate enhancement factor); Fixed Protection 2012 LSA GBP450,000 / LSDBA GBP1,800,000 and Fixed Protection 2014 LSA GBP375,000 / LSDBA GBP1,500,000 as fixed nominal amounts, no CPI indexation (PTM174700). W6/ADR-050 (2026-07-02, no numeric config value changed): ITA 2007 s.25(2) - the personal allowance is now allocated across non-savings/savings/dividends in the way that gives the greatest reduction in liability (beneficial allocation via an exact vertex search over band/SRB/PSA/dividend-allowance breakpoints), not a fixed non-savings-first order; savings and dividends remain UK-rate under both the rUK and Scotland regimes; HMRC SA Exclusions 140/142 mean HMRC own online SA calculator may show a higher figure for the affected shapes (the statute is authoritative). FA 2026 makes non-savings-first PA allocation mandatory from 2027-28 - loader TODO gates the optimiser off for that year. W16/IC-17 (2026-07-02, additive/opt-in, no numeric config value changed): wrapper-comparison exit-year income - an optional exitYearOtherIncome sets the marginal rate for the two EXIT-only computations (the bond chargeable-event top-slicing relief per ITTOIA 2005 s.535-537 and the exit-year residual GIA CGT band split per TCGA 1992), while the accumulation-year income/dividend drag and the ISA leg stay on today's income; when omitted the exit year uses otherIncome and the output is byte-identical. W12/IC-8 (ITEPA 2003 s.637S; PTM073010): a taxable LSDBA death-benefit lump-sum excess is priced on the RECIPIENT's marginal rate (recipientTaxableIncome), not the deceased's; the LSA/LSDBA excess-tax income base now prefers reduced_net_income over the adjusted_income proxy.","attribution":"ParaplanAI — UK Pension & Tax Rates (https://www.paraplanai.co.uk/rates)","notes":"Figures are read from the versioned, HMRC-verified configuration the ParaplanAI calculation engine computes against. Money values in GBP; rates in percent. For planning and illustration purposes only; not financial or tax advice."},"units":{"money":"GBP","rates":"percent"},"pension":{"standardAnnualAllowance":60000,"taperThresholdIncome":200000,"taperAdjustedIncome":260000,"taperReduction":"£1 for every £2 of adjusted income over the adjusted-income gate","taperFloor":10000,"moneyPurchaseAnnualAllowance":10000,"reliefBasicAmount":3600,"dbRevaluationPriorSeptemberCpiPercent":1.7},"lumpSumAllowances":{"lumpSumAllowance":268275,"lumpSumAndDeathBenefitAllowance":1073100,"protectionCeilings":{"fixedProtection2012":{"lsa":450000,"lsdba":1800000},"fixedProtection2014":{"lsa":375000,"lsdba":1500000},"fixedProtection2016":{"lsa":312500,"lsdba":1250000}}},"incomeTaxRuk":{"personalAllowance":12570,"personalAllowanceWithdrawnFrom":100000,"basicRateBand":37700,"additionalRateThreshold":125140,"basicRatePercent":20,"higherRatePercent":40,"additionalRatePercent":45},"incomeTaxScotland":{"note":"Non-savings bands only; savings, dividends and the personal allowance are UK-wide.","lowerBands":[{"ratePercent":19,"taxableBandWidth":2827},{"ratePercent":20,"taxableBandWidth":12094},{"ratePercent":21,"taxableBandWidth":16171},{"ratePercent":42,"taxableBandWidth":31338}],"advancedRatePercent":45,"topRatePercent":48,"topRateThreshold":125140},"savingsAndDividends":{"personalSavingsAllowance":{"basicRate":1000,"higherRate":500,"additionalRate":0},"startingRateForSavingsBand":5000,"startingRateForSavingsPercent":0,"dividendAllowance":500,"dividendRatesPercent":{"ordinary":8.75,"upper":33.75,"additional":39.35}},"nationalInsurance":{"employeePrimaryThreshold":12570,"employeeUpperEarningsLimit":50270,"employeeMainRatePercent":8,"employeeUpperRatePercent":2,"employerSecondaryThreshold":5000,"employerRatePercent":15},"childBenefit":{"weeklyFirstChild":26.05,"weeklyAdditionalChild":17.25,"hicbcLowerLimit":60000,"hicbcClawback":"1% of the Child Benefit per £200 of adjusted net income over the lower limit"},"childcare":{"taxFreeChildcareAnnualCapPerChild":2000,"taxFreeChildcareAnnualCapPerDisabledChild":4000,"adjustedNetIncomeCliff":100000},"trusts":{"trustRatePercent":45,"trustDividendRatePercent":39.35,"standardRateBand":null},"capitalGainsAndIsa":{"cgtAnnualExemptAmount":3000,"cgtRateBasicPercent":18,"cgtRateHigherPercent":24,"isaAnnualSubscriptionLimit":20000}}