New £13,037 tax allowance for pensioners from April 2027
Summarised from 3 outlets · Updated 28 Oct, 15:12 · Archive
Pensioners with annual income up to £13,037 will pay no income tax from April 2027 under a Budget change.
From April 2027, pensioners with total annual income of up to £13,037 will not pay income tax under a Budget measure. This represents £94 more in tax-free income than the existing personal allowance of £12,570. The figure is based on the full new State Pension.
The allowance will be withdrawn gradually for those earning slightly above the threshold. For every £3 earned above £13,037, pensioners will lose £1 of the extra allowance. A pensioner earning £13,186, for example, would be £150 above the threshold and would receive an allowance worth approximately £44 in tax savings.
By the time a pensioner's total income reaches £13,319 annually, the extra allowance will have been entirely removed. HMRC will apply the allowance automatically, so pensioners will not need to claim it.
How it is being reported
- Martin Lewis explains new £13,037 tax allowance for pensionersMartin Lewis on the new £13,037 pension tax allowance, how the £94 extra tax-free threshold works and what the Budget change means for older pensioners.Wharfedale Observer · 28 Oct, 14:18
- Martin Lewis explains new £13,037 tax allowance for pensionersMartin Lewis on the new £13,037 pension tax allowance, how the £94 extra tax-free threshold works and what the Budget change means for older pensioners.Keighley News · 28 Oct, 14:18
- Martin Lewis explains new £13,037 tax allowance for pensionersMartin Lewis on the new £13,037 pension tax allowance, how the £94 extra tax-free threshold works and what the Budget change means for older pensioners.Telegraph & Argus · 28 Oct, 14:18
In this story: Martin Lewis · John Healey · HMRC · United Kingdom
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