Pension IHT: A minor win for executors, a missed opportunity for HMRC

Tucked away in the Budget blurb, there was a snippet of good news for executors who will soon be wrestling with accounting for unused pension funds in inheritance tax (IHT) calculations. We are now all familiar with the basics of this significant change. From April 2027, any unused pensions – mainly from uncrystallised pension pots or drawdown accounts – will be included in calculations for what IHT is due when someone dies. The personal representative will be liable for that IHT, and for calculating and paying it to HM Revenue & Customs (HMRC). They must pay this by the end of the si...