The time is now to prepare for IHT tax shifts in 2027

'The introduction of IHT on pensions represents a fundamental shift in wealth transfer planning'

clock • 4 min read

Huge IHT changes are due to come into force in April 2027. James Floyd urges advisers to get clients' proverbial ducks in a row...

Pensions have long been viewed not just as a retirement savings vehicle, but also as one of the most efficient tools for passing wealth between generations. However, with the introduction of inheritance tax (IHT) on pensions from April 2027, this assumption will no longer hold. Now is the time for firms to engage with members and professional connections to prepare for the new regime and ensure families are not caught off guard. Under current legislation, defined contribution (DC) pensions typically sit outside the taxable estate on death. Funds can be passed to nominated beneficiarie...

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