Budget 2026

Budget 2026 (28 October): What's Confirmed for Your Pension, and What to Check After

Written by James Whitfield·Last reviewed 20 October 2026·Checked against GOV.UK and legislation.gov.uk

The Autumn Budget is on Wednesday 28 October 2026. Here is what is already set for pension tax relief, allowances, salary sacrifice and Inheritance Tax, and what to check once the Budget is published. This page lists only rules that have been published or legislated; it does not predict what the Budget will contain.

Quick answer

The Budget is on 28 October 2026 1. For 2026/27 the pension rules are already set: relief at your marginal rate of 20%, 40% or 45% 3, a £60,000 annual allowance and a £10,000 money purchase annual allowance 2. Already announced for later years: an NI cap on salary sacrifice above £2,000 from April 2029 4, and unused pensions counting for Inheritance Tax from 6 April 2027 56. No change has been announced for the Budget. We will update this page and our calculator on Budget day, as soon as the Budget documents are published.

Confirmed before the Budget
  • Budget date: 28 October 2026, with the Office for Budget Responsibility's forecast published the same day. 1
  • Annual allowance £60,000; money purchase annual allowance £10,000; the taper applies above £260,000 of adjusted income. 2
  • Lump sum allowance (tax-free cash): £268,275. 2
  • From April 2029, salary-sacrificed pension contributions above £2,000 a year pay employee and employer NI. 4
  • For deaths on or after 6 April 2027, most unused pension funds count towards the estate for Inheritance Tax (Finance Act 2026). 56
  • The Personal Allowance (£12,570) and basic rate limit (£37,700) are fixed up to and including 2030/31. 76

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What is already confirmed for 2026/27?

2026/27Figure
Tax relief on your own contributionsAt your marginal rate: 20%, 40% or 45% (Scotland 19% to 48%) 3
Annual allowance£60,000 2
Money purchase annual allowance£10,000 2
Tapered annual allowance starts at adjusted income of£260,000 2
Lump sum allowance£268,275 2

These are the figures our pension tax relief calculator uses today. See the annual allowance for 2026/27 for how each one works.

What is already set for later years?

  • Pensions and Inheritance Tax, from 6 April 2027. Most unused pension funds and death benefits come into the value of the estate for deaths on or after that date. Personal representatives report and pay the tax. Death-in-service benefits from registered schemes are out of scope, and the exemption for benefits passing to a spouse or civil partner stays. 5 The rules are in the Finance Act 2026. 6
  • Normal minimum pension age, from 6 April 2028. The earliest age you can usually take your pension rises from 55 to 57. 8
  • Salary sacrifice, from April 2029. Employee contributions made by salary sacrifice above £2,000 a year will pay employee and employer National Insurance. Employer pension contributions stay NI-free. 4
  • Income Tax thresholds to 2030/31. The £12,570 Personal Allowance and £37,700 basic rate limit stay the same for 2028/29, 2029/30 and 2030/31, so the income at which 40% relief starts is fixed. 76

What to look for in the Budget documents

  • Rates of tax relief, and any change to how relief is given.
  • The annual allowance, money purchase annual allowance and taper thresholds.
  • The lump sum allowance and tax-free cash.
  • The salary sacrifice NI cap and its start date.
  • Income Tax bands, because they decide your rate of relief.
  • The start date of each measure: Budget day, the next 6 April, or later.

What we will update on Budget day

If the Budget changes anything for pensions, we will update this page, the calculator and our allowance pages on 28 October, with the start date of each change and a link to the official document. If nothing changes, we will say so here. Our pension pack carries the same promise: if the Budget changes anything in it, your download link serves the updated edition free.

Frequently asked questions

When is the 2026 Budget?

Wednesday 28 October 2026. The Chancellor confirmed the date in a letter to the Treasury Committee on 31 July 2026, and the Office for Budget Responsibility's forecast is published the same day.

Has a change to pension tax relief been announced for the Budget?

No. Nothing about the 28 October Budget has been announced. The rules that apply now are the 2026/27 rules on this page: relief at your marginal rate, a £60,000 annual allowance and a £10,000 money purchase annual allowance.

What is changing for pension salary sacrifice in 2029?

From April 2029, employee pension contributions made through salary sacrifice above £2,000 a year will pay employee and employer National Insurance. Sacrifice up to £2,000, and ordinary employer pension contributions, stay NI-free.

When do pensions become subject to Inheritance Tax?

For deaths on or after 6 April 2027, most unused pension funds and death benefits count towards the value of the estate. Personal representatives report and pay the tax. Death-in-service benefits are out of scope, and pensions left to a spouse or civil partner stay exempt.

When will this page and the calculator be updated?

On Budget day, 28 October 2026, once the Budget documents are published on GOV.UK. If nothing changes for pensions, we will say so here and keep the calculator as it is.

Related: annual allowance 2026/27 · salary sacrifice calculator · claim higher-rate relief

Sources & references

  1. Chancellor letter to the Treasury Select Committee, Budget 2026 date (31 July 2026) — HM Treasury (GOV.UK)
  2. Budget 2025: Overview of tax legislation and rates, Annex A rates and allowances — GOV.UK
  3. Pension tax relief — GOV.UK
  4. Changes to salary sacrifice for pensions from April 2029 — GOV.UK
  5. Inheritance Tax: unused pension funds and death benefits — policy paper (GOV.UK)
  6. Finance Act 2026 (c. 11) — legislation.gov.uk
  7. Budget 2025: Overview of tax legislation and rates (OOTLAR) — GOV.UK
  8. Increasing normal minimum pension age — HM Treasury policy paper (GOV.UK)

Every headline figure above is checked against the official GOV.UK / HMRC guidance listed here for the 2026/27 tax year. Links open on GOV.UK.

Disclaimer: General information, not financial or tax advice. Figures are for the 2026/27 tax year, checked on 20 October 2026, before the Budget.