The Chancellor has delivered the Autumn Budget 2026.
The Budget contains no changes to Armed Forces pension benefits or the tax-free pension Lump Sum Allowance or Annual Allowance levels, which we welcome.
The Chancellor announced future adjustments to the State Pension Triple Lock, the treatment of pension death benefits (which do not affect the Armed Forces Pension Scheme) and the introduction of the new Pension Tax Allowance linked to the State Pension.
Finer detail
- There were no changes to Annual Allowance (£60K), Lump Sum Allowance (£268,275), Lump Sum and Death Benefit Allowance (£1,073,100) or Money Purchase Annual Allowance (£10K).
- Nor were there any changes to the pension related rules on Inheritance Tax (effective Apr 27) or Salary Sacrifice (effective Apr 29).
- A new Pension Tax allowance for low income pensioners means those who rely soley on the State Pension will not pay income tax when it exceeds the Personal Allowance.
- The Triple Lock will be amended in the next Parliament to ‘track earnings over time’ and the two-year limit on lump sum and death benefits being tax free will be lifted.
The policy paper can be found at Budget 2026
