UK Personal Allowance 2027/28 Calculator
UK personal allowance frozen at £12,570 since 2021/22 — likely still frozen through 2027/28 per fiscal drag policy. Tapered when adjusted net income exceeds £100,000: lose £1 for every £2 over £100K. Fully lost at £125,140.
The £100K Tax Trap
Income 100K-125,140 = 60% effective marginal rate (40% income tax + lost personal allowance). Pension contributions reclaim allowance pound-for-pound.
Frozen Threshold 2021-2028
Personal allowance frozen at £12,570. Fiscal drag pulls more taxpayers into 40% band each year. £100K threshold also frozen since 2010.
Restoration Strategy
Salary sacrifice or pension contribution reduces adjusted net income. £10K over → £10K pension contribution = full PA restored + 40% tax relief inside pension.
Source and Disclaimer
gov.uk income tax rates. 2027/28 freeze assumed; verify after each Budget (Spring + Autumn Statements).
Source: gov.uk/income-tax-rates. Last updated: May 2026.