Pensions and inheritance tax: upcoming changes

A seismic shift is looming for pensions – from April 2027, pensions will fall into a person’s chargeable estate for inheritance tax (IHT) purposes. This means any pension pots could be subject to 40% IHT.

For many years pensions were a useful way to reduce IHT liabilities, and while the legislation is pending, the changes from 2027 will mean that pensions will be treated like any other asset – potentially subject to 40% tax.

What planning options remain?

The discipline of having funds locked away until retirement can be valuable and tax advantages are still available. We uncover these and discuss the practical considerations you need to be taking on board.

As you navigate these changes, professional advice tailored to your circumstances is essential – the landscape has shifted, but with proper planning, effective strategies can still be implemented.