Oakspan

FAQ

What tax year do the figures use?

2026/27 income tax for England, Wales and Northern Ireland: personal allowance £12,570, basic rate to £50,270, additional rate from £125,140. Scottish bands are not used.

All pension questions

Statutory figures are for the 2026/27 tax year, and the income-tax bands are those for England, Wales and Northern Ireland. Scottish income tax uses different rates and thresholds. If you live in Scotland, treat the tax line as a rough order of magnitude, not a bill.

  • Personal allowance £12,570, tapered away from £100,000 and gone by £125,140.
  • Basic rate 20% on taxable income up to £50,270.
  • Higher rate 40% from £50,270 to £125,140.
  • Additional rate 45% above £125,140.
  • Annual allowance £60,000. Money purchase annual allowance £10,000.
  • Lump sum allowance £268,275. Tax-free cash up to 25% within that cap.
  • Full new State Pension £241.30 a week (£12,547.60 a year).

What is taxed, and what is not

In a retirement year Oakspan adds three things and runs them through those bands: the taxable part of the private withdrawal, the State Pension, and any other taxable income you entered (also inflated). With the lump-sum switch on, the opening cash is tax-free and later drawdown is fully taxable. With the switch off, 25% of each withdrawal is left out of tax.

The personal-allowance taper above £100,000 is included. National Insurance, the marriage allowance, dividend and savings allowances, student loans and means-tested benefits are not. Pension scheme charges are not deducted as a separate line — fold them into a lower growth rate if you know them.

Future tax years are not guessed. The same bands are used in every projected year, while the income itself inflates. That will be wrong if thresholds stay frozen, or if they rise. It is a consistent illustration, not a multi-year tax code.

The table and the sources sit on the rates page.

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