Unused pension funds and IHT from April 2027

tiemadmin • 28 August 2025

From 6 April 2027, new measures first announced in the Autumn Budget 2024 will come into force. These changes will bring most unused pension funds and death benefits into the scope of Inheritance Tax (IHT) from April 2027. This represents a major change to the tax treatment of pensions on death and will significantly broaden the IHT net by capturing assets that were previously excluded from tax.

Individuals with significant pension savings should review their estate plans carefully. Beneficiaries inheriting unused pension funds or death benefits may now face an IHT charge, making forward planning essential. Under the revised rules, personal representatives will be responsible for reporting and paying any IHT due, rather than pension scheme administrators.

There are important exclusions to note. Death-in-service benefits paid from registered pension schemes and dependants’ scheme pensions from either defined benefit arrangements or collective money purchase schemes will not fall within the scope of IHT. These will continue to be treated as before.

These reforms follow a technical consultation which concluded in January 2025 and led to changes in how liability is assigned. The new approach has raised concerns about potential issues such as payment delays, added administrative burden, and data privacy risks. As a result, close cooperation between personal representatives and pension providers will become increasingly important to ensure compliance and efficient estate administration.

< Older Post

Newer Post >

Budgeting and forecasting in a period of lower confidence

by tiemadmin • 9 February 2026
Many business owners are entering the new year with a sense of caution. Confidence across the UK business community has softened, driven by continued cost pressures, uncertainty over tax policy and The post Budgeting and forecasting in a period of lower confidence appeared first on Feldon Accountancy.

Business rates support and cash flow for hospitality businesses

by tiemadmin • 9 February 2026
Hospitality businesses continue to operate in a challenging environment. Rising wage costs, energy prices and supply chain pressures have all placed strain on margins. Against this backdrop, recent The post Business rates support and cash flow for hospitality businesses appeared first on Feldon Accountancy.

Eligibility for Business Asset Disposal Relief

by tiemadmin • 5 February 2026
Business Asset Disposal Relief (BADR) can significantly reduce the Capital Gains Tax due when selling a business or shares, but with higher rates coming from April 2026, timing and eligibility matter The post Eligibility for Business Asset Disposal Relief appeared first on Feldon Accountancy.