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

Advisers are revisiting long-held assumptions

clock • 4 min read

The introduction of IHT on pensions from April next year represents a reset for retirement planning, writes Lauren Kiley

From 6 April 2027, unused pension funds and many pension death benefits will be brought into the inheritance tax calculation. For years, defined contribution pensions have sat outside the estate, shaping how clients and advisers approached retirement and intergenerational planning. That assumption is changing. The tax shift matters, but for advice firms the bigger issue is regulatory. This is not a Budget note to file away. It changes conversations about retirement income, beneficiary nominations, gifting, trusts, protection, investment risk and family outcomes. It also creates a f...

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