Inheritance Tax Changes 2027: What You Need to Know

From 6 April 2027, most unused pension funds and certain pension death benefits will be included in your estate for Inheritance Tax (IHT). IHT rates are unchanged, and the nil-rate band, residence nil-rate band and spousal exemption still apply. Even so, the Government expects around 49,000 estates to be affected in the first year, either paying IHT for the first time or paying more.