Skip to content
Estate Planning Specialists

15 articles

Pensions and IHT 2027

Practical guides on pensions and iht 2027 for UK executors and families dealing with probate.

  • Pensions and IHT 2027

    Defined Benefit vs Defined Contribution Pensions and Inheritance Tax: What's the Difference?

    From 6 April 2027, most unused pension funds and death benefits will count as part of your estate for inheritance tax. But the reform does not treat all pensions the same. Defined contribution pots (SIPPs, workplace pots, personal pensions) are generally in scope, while the ongoing dependants' pensions paid by defined benefit (final salary) schemes are generally not. This guide explains the difference between the two pension types, sets out exactly what is in and out of scope, and shows why the distinction matters for your estate.

    7 min read

  • Pensions and IHT 2027

    Do Death in Service Benefits Count Towards the 2027 Pension IHT Changes?

    No. Death in service benefits paid from registered pension schemes are excluded from the inheritance tax changes that take effect on 6 April 2027, and the exclusion applies whether or not the scheme pays the benefit at the trustees' discretion. The reform instead targets unused pension funds and most other pension death benefits, such as remaining drawdown pots and uncrystallised funds. This guide explains what counts as death in service, why it was carved out, and which pension payments are newly caught.

    7 min read

  • Pensions and IHT 2027

    Discretionary Pension Trusts and the 2027 IHT Changes Explained

    Most modern pension schemes pay death benefits under a discretionary trust, and that discretion is the main reason unused pension funds currently sit outside your estate for inheritance tax. From 6 April 2027 that protection is removed: most unused pension funds and death benefits will count towards the estate whether or not the scheme keeps its discretion. This guide explains why the trust structure worked, why it stops working, and what changes for bypass trusts and expression of wish forms.

    7 min read

  • Pensions and IHT 2027

    What Executors Need From Pension Providers After a Death (2027 Rules)

    After a death, an executor needs three things from every pension provider: the value of the pension at the date of death, the type of benefit (and whether it was in payment), and the nomination position. From 6 April 2027, when unused pension funds and death benefits enter the inheritance tax net, this stops being background admin and becomes a legal necessity, because personal representatives become responsible for reporting and paying any IHT due on those pensions. This guide gives you a practical, ordered question list to send each provider, the identity evidence schemes will ask for, and what changes under the 2027 rules.

    8 min read

  • Pensions and IHT 2027

    Executor Duties for Reporting Pensions Under the 2027 IHT Rules

    From 6 April 2027 most unused pension funds and death benefits count as part of the estate for inheritance tax, and the personal representatives (the executors) are the people legally responsible for reporting and paying any IHT due on them. This guide separates what you as executor must actually do from what happens automatically between the pension scheme and HMRC, and explains the practical options for paying tax on money you cannot yet touch, including the scheme's ability to withhold up to 50% of the pension for up to 15 months.

    8 min read

  • Pensions and IHT 2027

    Current Law vs 2027: How Pension Death Benefits Are Taxed Today

    Under current law, two separate taxes can touch a pension death benefit, and it pays to keep them apart. Income tax depends on the age at death: benefits are usually tax free if the member dies before 75, and taxed at the beneficiary's marginal rate at 75 or over. Inheritance tax usually does not apply at all today, because most defined contribution pensions are paid at the scheme's discretion and sit outside the estate. That second layer changes on 6 April 2027, when unused pension funds and death benefits enter the inheritance tax net.

    7 min read

  • Pensions and IHT 2027

    Pension Inheritance Tax From 2027, Explained in Plain English

    From 6 April 2027, money left in your pension when you die will usually count as part of your estate for inheritance tax, which it currently does not. This guide assumes no prior knowledge. It explains what an estate is, why pensions used to sit outside it, what changes in 2027, who is likely to be affected, and how the tax actually gets paid when most of the money is locked inside a pension.

    6 min read

  • Pensions and IHT 2027

    How the 2027 Pension IHT Changes Affect Married Couples and Civil Partners

    From 6 April 2027 most unused pension funds and death benefits will count as part of the estate for inheritance tax. For married couples and civil partners the headline is reassuring: a pension left to a spouse or civil partner remains completely exempt, exactly like any other asset covered by the spouse exemption. The catch is that the exemption defers the tax rather than removing it, because the survivor's estate now holds both pensions and both sets of assets when the second death comes. This guide explains the first-death position, the second-death accumulation problem, and how the couple's transferable allowances interact with pension wealth.

    6 min read

  • Pensions and IHT 2027

    Pension Inheritance Tax 2027: Timeline and Key Dates

    From 6 April 2027, most unused pension funds and death benefits will count towards inheritance tax for the first time. The change was announced at the Autumn Budget in October 2024, consulted on over the winter, and became law when the Finance Act 2026 received Royal Assent on 18 March 2026. This post sets out every key date in one place, explains what the date of death means for whether the new rules apply, and covers what is still to come from HMRC before April 2027.

    7 min read

  • Pensions and IHT 2027

    The 2027 Pension Inheritance Tax Reform: A Complete Guide

    From 6 April 2027 most unused pension funds and death benefits will count as part of your estate for inheritance tax. This guide tells the full story of the reform: why the government proposed it at the Autumn Budget 2024, how a technical consultation changed the original design, what Finance Act 2026 actually legislated, and what is still being finalised before commencement. It is written for ordinary readers and personal representatives, not advisers, and it recommends no product or planning action.

    7 min read

  • Pensions and IHT 2027

    How Will Pension Schemes Report Death Benefits to HMRC From 2027?

    From 6 April 2027 most unused pension funds and death benefits count as part of the estate for inheritance tax, and the person responsible for reporting and paying the tax is the personal representative, not the pension scheme. Scheme administrators must supply a valuation within four weeks of being told about the death, and new payment routes let the scheme pay tax straight to HMRC. This guide walks executors through the reporting chain step by step.

    7 min read

  • Pensions and IHT 2027

    Pensions and Inheritance Tax: What Changes on 6 April 2027

    From 6 April 2027, most unused pension funds and death benefits will be counted as part of your estate for inheritance tax. Pensions passing to a spouse or civil partner stay exempt, and death in service benefits from registered pension schemes are excluded, but many families will face inheritance tax on pension money for the first time. This guide explains exactly what changes, HMRC's own estimates of who is affected, and what executors and pension holders should understand now.

    8 min read
Back to all articles