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...

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

Clients moving overseas? Everything advisers need to consider

Clients moving overseas? Everything advisers need to consider

Robust cross-border planning essential

Daivd Morley
clock 30 January 2026 • 4 min read
The UK's immigration/tax disconnect on global wealth

The UK's immigration/tax disconnect on global wealth

The UK has no dedicated immigration route for internationally mobile private wealth

John Kiely and Simon Malkiel
clock 29 January 2026 • 6 min read
IHT receipts continue to climb ahead of 2027 pension changes

IHT receipts continue to climb ahead of 2027 pension changes

April – December 2025 saw Treasury net £6.6bn from estates

Jenna Brown
clock 22 January 2026 • 3 min read