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

Majority of UK adults oblivious to pensions IHT change - research

Majority of UK adults oblivious to pensions IHT change - research

Standard Life research finds 89% have little or no awareness about upcoming IHT pension changes

Martin Richmond
clock 24 March 2026 • 3 min read
'Good news' for Treasury as CGT receipts hit £21.5bn

'Good news' for Treasury as CGT receipts hit £21.5bn

Receipts reached £2.7bn in February 2026

Sophia Panayi
clock 20 March 2026 • 2 min read
'No surprise' – IHT receipts rise with record year expected

'No surprise' – IHT receipts rise with record year expected

Hit £7.7bn for year to February

Jen Frost
clock 20 March 2026 • 3 min read