16/06/2026
From April 2027, unused pension savings could be included in Inheritance Tax (IHT) calculations, which may affect how some people use their pension and plan their estate. Pensions left to a spouse or civil partner will usually remain free from IHT, but passing pension wealth to children or grandchildren could be affected.
For context, most people can currently leave £325,000 tax-free, with an extra £175,000 if passing on a home to children or grandchildren. Couples can potentially pass on up to £1 million without IHT, and anything above that is normally taxed at 40%.
This could be a good time to review your pension strategy and consider options like withdrawals, alternative savings, or seeking advice from an Independent Financial Adviser.