Rachel Reeves introduces inheritance tax on unspent defined contribution pensions from April 2027
Updated
Updated · The Guardian · Apr 25
Rachel Reeves introduces inheritance tax on unspent defined contribution pensions from April 2027
7 articles · Updated · The Guardian · Apr 25
From April 2027, unused pension savings will be included in inheritance tax calculations for estates exceeding the £325,000 threshold, affecting most workplace and all private pensions.
Financial advisers report a surge in clients accelerating retirement spending, gifting, and annuity purchases to mitigate potential tax bills, which could reach five or six figures for some families.
The change shifts inheritance tax from a concern for the wealthy to a middle-income issue, prompting widespread financial planning and increased interest in gifting allowances, annuities, and life insurance options.
Can you really face a 60% tax bill on your inherited pension after April 2027?
How can gifting money to family now shield your pension from the new inheritance tax?
With pension pots now targeted, is any form of savings safe from inheritance tax?
Are annuities now the safest way to pass on wealth without facing the pension tax?
For UK expats, will foreign tax treaties protect your pension from this IHT change?
Why did the government reject extending the 'unworkable' six-month IHT payment deadline?