2026/27
Pensions
- Annual allowance£60,000
- Tapered minimum£10,000 For income > £360k adjusted
- Money Purchase Annual Allowance£10,000
- Lump Sum Allowance (LSA)£268,275
- Lump Sum and Death Benefit Allowance£1,073,100
- New State Pension (per week)£241.3
- Basic State Pension (per week)£184.9
- Auto-enrolment trigger£10,000
- Qualifying earnings band — lower£6,240
- Qualifying earnings band — upper£50,270
Pension allowances and tax relief
Pension contributions receive tax relief, making them one of the most efficient ways to save. The annual allowance caps how much can be contributed tax-efficiently each year (with tapering for high earners and carry-forward of unused allowance), and there are rules on how and when benefits can be drawn. The tables above show the current allowances.
Pensions interact with income tax, the £100,000 allowance taper and inheritance planning, so they are worth coordinating with your wider tax position — something we help with.
Frequently asked
How much can I pay into a pension tax-efficiently?+
Up to the annual allowance, subject to your earnings and any taper for high income. Unused allowance from earlier years may often be carried forward.
Do pension contributions cut my tax?+
Yes — they receive tax relief at your marginal rate and can help retain the personal allowance and child benefit. We can model the effect.