Passing on wealth: How IHT changes will affect pension planning

'Change could result in significantly higher tax liabilities '

clock • 4 min read

Joshua Croft looks a the planned changes to IHT rules and explores how they will affect pension planning...

For many years, pensions have been viewed as a tax-efficient way to pass on wealth to future generations. Many individuals have accumulated substantial pension funds, operating under the assumption that these savings could be transferred to their heirs with minimal tax implications. However, a significant policy shift is on the horizon that will reshape the way pensions are treated for inheritance tax (IHT) purposes. The government has announced that, from April 2027, any unused pension funds will be included in an individual's estate for IHT calculations. This marks a departure from ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

IHT on pensions: Why the compliance challenge is bigger than the tax change

IHT on pensions: Why the compliance challenge is bigger than the tax change

Advisers are revisiting long-held assumptions

Lauren Kiley
clock 08 July 2026 • 4 min read
OBR forecasts rise in IHT and CGT take as ageing population increases

OBR forecasts rise in IHT and CGT take as ageing population increases

Expected to increase from 1.4% to 2.2% of GDP

Isabel Baxter
clock 08 July 2026 • 2 min read
Business Relief after April 2026: Why advisers are reassessing AIM

Business Relief after April 2026: Why advisers are reassessing AIM

'This does not signal the end of AIM within estate planning'

Nick Jones
clock 06 July 2026 • 5 min read