Pensions allowances

The pensions annual allowance remains at £60,000 for 2026/27. Where adjusted net income exceeds £260,000 and threshold income exceeds £100,000, the allowance is reduced by £1 for every £2 by which adjusted net income exceeds £260,000 until the annual allowance is reduced to £10,000.

The money purchase annual allowance, which applies where a person has flexibly accessed their pension having reached the age of 55, remains at £10,000 for 2026/27.

The cap on the 25% tax free lump sum remains at £268,275.