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UK Pensions to Impact Inheritance Tax Starting April 2027

2/28/2026

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Summary

Story summary

From April 6, 2027, United Kingdom pension savings will count toward the inheritance tax (IHT) threshold of £325,000, potentially increasing tax liabilities.
Currently, pensions are excluded from estate valuations, allowing tax-free transfers to heirs.
Experts advise proactive steps to reduce estate value before the reforms, including accessing pension income early, gifting allowances, raising contributions, and considering life insurance.

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Story summary

From April 6, 2027, United Kingdom pension savings will count toward the inheritance tax (IHT) threshold of £325,000, potentially increasing tax liabilities.
Currently, pensions are excluded from estate valuations, allowing tax-free transfers to heirs.
Experts advise proactive steps to reduce estate value before the reforms, including accessing pension income early, gifting allowances, raising contributions, and considering life insurance.