15/10/2026
For years, pensions have offered a valuable tax advantage alongside retirement income, enabling people to pass on wealth to the next generation. But from April 2027, most unused pensions and death benefits will fall into estates for IHT purposes.
In some cases, inherited pensions may be subject to both inheritance tax (IHT) and income tax.
If you pass your estate to a spouse or civil partner, it’s IHT free.
There are financial planning opportunities such as gifting, annuities and insurance cover which can help lower the tax burden for your beneficiaries.
https://www.curzonwm.com/article/detail/sjpp/pensions-and-iht-the-double-tax-trap?partner=matthewcurzon
For years, pensions have offered a valuable tax advantage alongside retirement income, enabling people to pass on wealth to the next generation. But from April 2027, changes to inheritance tax rules could mean some families face a significantly larger tax bill than they expected.
