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Pension Death Benefits: Tax Treatment and Planning Strategies for Accountants

· 19 min

Executive Summary

The Finance (No.2) Bill 2025-26 (clauses 63-68) brings most unused pension funds and death benefits within the Inheritance Tax estate for deaths on or after 6 April 2027. The government estimates 10,500 estates will newly face IHT liability, with 38,500 paying more at an average increase of approximately GBP 34,000. Combined effective tax rates exceeding 47% arise for post-age-75 deaths where both IHT at 40% and income tax at up to 45% apply, though draft legislation includes a double taxation credit mechanism. Personal representatives -- not scheme administrators -- bear reporting and payment liability. Pension values will also count toward the GBP 2 million residence nil-rate band taper threshold. Accountants, holding the complete income and asset picture, are positioned as essential coordinators of pension death benefit planning within the 14-month implementation window.

1. The Pension Death Benefits Landscape

Pensions have long occupied a unique position in UK estate planning as the last significant asset class largely outside the Inheritance Tax net. That position changes fundamentally from 6 April 2027. The Finance (No.2) Bill 2025-26, currently progressing through Parliament following Public Bill Committee proceedings concluded on 26 February 2026, introduces clauses 63-68 bringing most unused pension funds and death benefits within the value of the deceased's estate for IHT purposes.12

The scale of the change is substantial. Of approximately 213,000 estates with inheritable pension wealth projected for 2027-28, HMRC estimates 10,500 will newly face IHT liability and 38,500 will pay increased IHT, with an average increase of approximately GBP 34,000 per affected estate.3 Exchequer revenue projections from the TIIN estimate GBP 640 million in 2027-28, rising to GBP 1,460 million by 2029-30; the policy paper projects GBP 710 million in the first year, rising to GBP 1,665 million by 2030-31, reflecting revised OBR-certified costings published at Budget 2025.34

For accountancy practices, the implications extend beyond client advisory. Approximately 75% of IHT400 forms are currently submitted by professional agents -- predominantly accountants and solicitors.3 The expanded IHT scope creates both an administrative challenge and an advisory opportunity. Accountants hold the complete income and asset picture needed to quantify combined IHT and income tax exposure; no other professional has this integrated view. The accountant's role as the client's primary tax advisor creates a natural coordination point between pension specialists, solicitors, and financial advisors.

This analysis proceeds from the current income tax framework -- which remains the baseline for understanding the April 2027 overlay -- through the mechanics of the IHT inclusion, the double taxation credit mechanism, the RNRB taper impact, and the planning strategies that accountants should consider implementing within the 14-month window before the new regime takes effect.

2. Current Income Tax Framework for Pension Death Benefits

2.1 The Age-75 Threshold

The age-75 boundary remains the primary determinant of income tax treatment for pension death benefits from defined contribution arrangements.5

Pre-age-75 deaths. Lump sum death benefits are generally tax-free provided payment occurs within two years of the scheme administrator becoming aware of the death.5 The total tax-free amount is capped by the Lump Sum and Death Benefit Allowance (LSDBA) of GBP 1,073,100, introduced from 6 April 2024 following the abolition of the lifetime allowance by Finance Act 2024 s.14 and Schedule 9.67 Excess above the LSDBA is taxed at the recipient's marginal income tax rate.8 Critically, beneficiary flexi-access drawdown is not tested against the LSDBA -- a planning distinction that permits drawdown payments without depleting the allowance available for other lump sum death benefits.9

Post-age-75 deaths. All pension death benefits -- whether lump sums or beneficiary drawdown -- are taxable at the recipient's marginal income tax rate.58 Where benefits are paid to a trust, the special lump sum death benefit charge applies at 45%.8 The choice between lump sum and drawdown carries distinct tax consequences: lump sums crystallise the full income tax liability in a single tax year, whereas beneficiary drawdown permits spreading income across multiple years, potentially at lower marginal rates.

2.2 Authorised Death Benefit Types and Scheme Discretion

Finance Act 2004 ss.167-168 govern six types of authorised lump sum death benefits: defined benefits lump sum death benefit, uncrystallised funds lump sum death benefit, pension protection lump sum death benefit, annuity protection lump sum death benefit, drawdown pension fund lump sum death benefit, and flexi-access drawdown fund lump sum death benefit.10 Authorised pension death benefits include dependant's scheme pensions (defined benefit or money purchase), beneficiary's annuities (money purchase only), and beneficiary's flexi-access drawdown pensions (money purchase only).10

Pension scheme trustees and managers retain discretionary authority over death benefit distribution. Members provide expressions of wish or nomination forms, but schemes are not legally bound to follow them.10 This discretion has historically been the mechanism keeping pension death benefits outside the IHT estate -- a position that the April 2027 changes supersede regardless of whether benefits are paid on a discretionary or non-discretionary basis.

2.3 The Current IHT Position (Pre-April 2027)

The existing IHT framework provides necessary context. Section 12(2ZA) IHTA 1984 and s.12A (inserted by the Taxation of Pensions Act 2014) disapply IHTA 1984 s.3(3) -- the omission to exercise a right -- for money purchase drawdown arrangements.11 Pension contributions made in normal health are not transfers of value; contributions made while in ill health may constitute transfers of value under HMRC guidance at IHTM17043.12 This entire framework is superseded from 6 April 2027 for deaths on or after that date.

3. The April 2027 IHT Inclusion: Scope, Exclusions, and Mechanics

3.1 Legislative Vehicle and Parliamentary Progress

The Finance (No.2) Bill 2025-26, clauses 63-68, provides the legislative vehicle for bringing pension death benefits within IHT.1 First reading occurred on 2 December 2025, second reading on 16 December 2025, Committee of Whole House on 12-13 January 2026, and Public Bill Committee proceedings concluded on 26 February 2026.2 Royal Assent is expected during 2026, with the operative date applying to deaths on or after 6 April 2027.4

3.2 Benefits Within Scope

From 6 April 2027, the following are included within the value of the deceased's estate for IHT purposes:4

  • Unused defined contribution pension funds (including SIPPs and SSASs)
  • Unused drawdown pension funds
  • Lump sum death benefits from DC arrangements
  • Death in deferment lump sums from defined benefit schemes
  • Five-year guarantee payments from DB schemes
  • Benefits from qualifying non-UK pension schemes and s.615(3) schemes
  • Discretionary and non-discretionary pension death benefits alike

3.3 Excluded Benefits

Three categories remain outside IHT scope:4

  • Death in service benefits from registered pension schemes (regardless of discretionary or non-discretionary status)
  • Dependant's scheme pensions from defined benefit arrangements
  • Dependant's pensions from collective money purchase arrangements

The rationale for these exclusions is that death in service benefits and dependant's pensions serve an income replacement function rather than an inheritance function -- a distinction the policy paper makes explicit.4

3.4 Exemptions Maintained

The spousal and civil partner exemption is maintained: pension death benefits passing to a surviving spouse or civil partner remain IHT-exempt.13 The charitable exemption is similarly preserved for charity lump sum death benefits.13 However, payments to a spousal bypass trust are assessed to IHT and do not benefit from the spousal exemption, even where the surviving spouse is a potential beneficiary of the trust -- a change with significant planning implications addressed in Section 7.1314

4. Liability, Reporting, and the Administrative Challenge

4.1 The PR-Led Model

The government's consultation on liability, reporting, and payment (published July 2025 following 649 written responses) reversed the original proposal for a pension scheme administrator-led model.13 Personal representatives bear responsibility for reporting and paying IHT on pension death benefits from April 2027.13

The reversal was driven by practical considerations. Over 160,000 estates annually with pension wealth but no IHT liability would have been brought unnecessarily into the IHT reporting process under the PSA model.13 Scheme administrators would likely have withheld 40% of benefits on account to avoid late payment interest, delaying payments to beneficiaries regardless of whether IHT was actually due. The PR-led model aligns pension death benefits with the existing IHT compliance architecture.

4.2 Information Exchange and Payment Timeline

The administrative mechanics operate under a compressed timeline:13

  1. Personal representatives notify the scheme administrator of the member's death
  2. Scheme administrators must provide a pension valuation within four weeks of receiving death notification
  3. Administrators provide beneficiary identity details (name, address, date of birth, National Insurance number) when an IHT account is required
  4. IHT remains payable within six months of the end of the month of death -- no extension has been granted for estates including pension assets

4.3 The Withholding Mechanism

Three payment options are confirmed:413

  1. PRs pay IHT from the free estate, then seek reimbursement from pension beneficiaries
  2. Beneficiaries direct scheme administrators to pay IHT directly to HMRC from pension funds
  3. Beneficiaries take benefits in full, pay IHT directly, and claim income tax refunds where applicable

PRs may issue withholding notices to scheme administrators, requiring withholding of up to 50% of taxable benefits for up to 15 months from the end of the month of death.4 Payments to spouses, civil partners, or charities are excluded from withholding. Pension beneficiaries become jointly and severally liable for IHT due on pension death benefits once appointed as beneficiaries.13

For accountancy practices acting as professional agents, the expanded scope introduces a material workflow challenge. Aggregating valuations from multiple pension schemes within the four-week timeline, calculating proportional nil-rate band allocation across pension and non-pension assets, and managing the six-month payment deadline demands systematic processes that many practices will need to develop before April 2027.

5. Double Taxation: Quantifying the Combined Exposure

5.1 The Double Taxation Problem

For post-age-75 deaths from April 2027, pension death benefits attract both IHT at 40% (IHTA 1984 s.7 and Schedule 1) and income tax at up to 45%. Without relief, the combined effective rate would reach approximately 67% (40% IHT on the pension fund, followed by 45% income tax on the remaining 60% = 27%, producing a total effective rate of 67%).1315

5.2 The Income Tax Credit Mechanism

Draft legislation provides that income tax will not be due on the amount of relevant death benefits equal to the IHT attributable to pension benefits.13 This credit mechanism operates by reducing the taxable pension income by the amount of IHT allocated to pension assets, effectively preventing the same portion of the pension fund from bearing both IHT and income tax. The credit mitigates but does not eliminate double taxation: beneficiaries still pay income tax on the pension amount exceeding the IHT-attributed portion.

5.3 Worked Example: Combined Tax Exposure (Single Taxpayer, Post-Age-75)

Consider a single individual dying at age 80 with a SIPP fund of GBP 500,000 and a non-pension estate of GBP 500,000. Available allowances: nil-rate band GBP 325,000 plus residence nil-rate band GBP 175,000 = GBP 500,000.16

IHT calculation:

  • Total estate: GBP 1,000,000
  • Taxable estate (after GBP 500,000 allowances): GBP 500,000
  • IHT at 40%: GBP 200,000

Proportional NRB allocation to pension:

  • Pension share of estate: GBP 500,000 / GBP 1,000,000 = 50%
  • NRB allocated to pension: 50% x GBP 500,000 = GBP 250,000
  • IHT attributable to pension: 40% x (GBP 500,000 - GBP 250,000) = GBP 100,000

Income tax on pension death benefit (with credit):

  • Pension fund: GBP 500,000
  • Less IHT paid from pension: GBP 100,000
  • Remaining pension: GBP 400,000
  • Income tax credit for IHT paid: GBP 100,000
  • Taxable pension income: GBP 400,000 - GBP 100,000 = GBP 300,000
  • Income tax at 45% (additional rate beneficiary): GBP 135,000

Beneficiary receives: GBP 500,000 - GBP 100,000 (IHT) - GBP 135,000 (income tax) = GBP 265,000 Combined effective rate on pension: 47%1315

Without the income tax credit, the beneficiary would receive GBP 500,000 - GBP 100,000 - GBP 180,000 (45% of GBP 400,000) = GBP 220,000, an effective rate of 56%. The credit saves GBP 45,000 but a 47% combined rate remains substantial.

5.4 The Modelling Obligation

The worked example illustrates the general principle, but individual client circumstances produce materially different outcomes. Where the beneficiary is a basic rate taxpayer (20%), the combined effective rate falls significantly. Where multiple beneficiaries share the pension fund, each beneficiary's marginal rate determines the income tax component. Accountants should model the specific combined rate for each client relationship, incorporating the client's estate composition, projected pension value at death, and beneficiary tax positions. This modelling exercise is the natural domain of the accountant as the professional with access to the complete tax picture.

6. Residence Nil-Rate Band Taper: The Hidden Impact of Pension Inclusion

6.1 The RNRB Taper Mechanism

The residence nil-rate band of GBP 175,000 reduces by GBP 1 for every GBP 2 of estate value above GBP 2 million, disappearing entirely at GBP 2,350,000.1617 From 6 April 2027, pension values count toward the GBP 2 million taper threshold -- a change with significant implications for estates that currently sit below the threshold.17

6.2 Worked Example: RNRB Taper Triggered by Pension Inclusion

Consider a client with a non-pension estate of GBP 1.8 million and a pension fund of GBP 400,000.

Pre-April 2027 position: Estate for RNRB taper purposes: GBP 1.8 million (pensions excluded). Full RNRB of GBP 175,000 available.

Post-April 2027 position: Estate for RNRB taper purposes: GBP 2.2 million (pensions included). RNRB reduced: GBP 175,000 - ((GBP 2,200,000 - GBP 2,000,000) / 2) = GBP 175,000 - GBP 100,000 = GBP 75,000.17

The lost GBP 100,000 of RNRB equates to GBP 40,000 additional IHT at 40%. For married couples, the transferable RNRB means the potential loss doubles to GBP 80,000 in additional IHT where both estates are affected. This taper effect operates independently of the direct IHT charge on the pension fund itself, compounding the overall tax increase.

6.3 Client Identification

Accountants should identify all clients with combined estates (including pension values) between GBP 2 million and GBP 2,350,000 who currently benefit from full or partial RNRB. These clients experience a double impact from the April 2027 changes: direct IHT on pension death benefits and indirect IHT from lost RNRB. The RNRB taper effect may, in some cases, exceed the direct IHT on the pension fund -- a counterintuitive outcome that underscores the need for comprehensive modelling.17

7. Planning Strategies for Accountants

7.1 Decumulation Sequencing Reassessment

The long-standing advice to preserve pension wealth and draw down non-pension assets first must be fundamentally reassessed from April 2027.18 Where the client's marginal income tax rate during lifetime is lower than the combined IHT and income tax rate that would apply on death, accelerated pension drawdown becomes tax-efficient.

Illustrative comparison: A client aged 72 with a marginal income tax rate of 40% during lifetime faces a combined rate of 47% on pension death benefits (as calculated in the Section 5 example). Drawing down pension funds at 40% income tax in life, rather than preserving them for a 47% combined rate on death, produces a 7 percentage point saving. However, the calculation is not straightforward: it requires assumptions about investment growth foregone, projected age at death, and the potential impact of drawdown on the RNRB taper threshold. The accountant's role is to model these variables for individual clients -- the investment decision itself remains within the FCA perimeter and requires referral to a regulated financial advisor.18

7.2 Nomination and Spousal Bypass Trust Review

From April 2027, the spousal exemption continues to apply to pension death benefits paid directly to a surviving spouse or civil partner.13 However, spousal bypass trusts lose their IHT advantage: payments to a bypass trust are assessed to IHT and do not benefit from the spousal exemption, even where the surviving spouse is a potential beneficiary.14

This change demands a systematic review of all client pension nominations and expressions of wish. Accountants should coordinate with solicitors to:

  • Review nomination forms for all clients with significant pension wealth
  • Assess whether existing spousal bypass trust nominations remain appropriate or should revert to direct spousal nomination
  • Ensure pension nominations align with will provisions following any post-April 2027 amendments
  • Consider direct spousal nomination to defer IHT to the second death, where the surviving spouse's estate planning position supports this approach

7.3 Pension Contributions Strategy

Maximising pension contributions for estate planning purposes is no longer automatically advantageous from April 2027. However, pension contributions retain their income tax relief benefit. The annual allowance remains GBP 60,000 for 2025-26, with carry forward of up to three years of unused allowance, and the tapered annual allowance reduces for adjusted income above GBP 260,000 to a minimum of GBP 10,000.19

The accountant's modelling task is to determine whether the income tax relief on contributions (up to 45% for additional rate taxpayers) outweighs the future IHT cost on the accumulated fund -- a calculation that depends on the client's age, health, estate composition, beneficiary circumstances, and the interaction with the RNRB taper threshold.

7.4 Life Insurance for IHT Liquidity

Where pension death benefits will attract IHT, life insurance written in trust may provide liquidity for IHT payment without requiring beneficiaries to wait for the withholding period to expire or access the free estate.18 The withholding mechanism -- permitting PRs to freeze up to 50% of pension benefits for up to 15 months -- creates cash flow challenges that insurance proceeds held outside the estate can address. The insurance cost must be weighed against the projected IHT liability, and the trust structure must be appropriate to ensure proceeds fall outside the insured's estate.

7.5 Charitable Legacy and the 36% Reduced Rate

Where pension asset inclusion pushes the total estate above the threshold for the 36% reduced IHT rate, accountants should consider whether a charitable legacy of at least 10% of the baseline estate can reduce the headline rate from 40% to 36% across the entire taxable estate.20 The interaction between pension values and the 36% calculation requires careful modelling: the marginal cost of the charitable gift may be substantially less than the IHT saved, depending on the estate composition.

7.6 RNRB Taper Management

Targeted drawdown to reduce the combined estate value below the GBP 2 million taper threshold represents a specific planning opportunity. Where a client's combined estate marginally exceeds GBP 2 million only because of pension inclusion, relatively modest drawdown during lifetime may preserve the full GBP 175,000 RNRB (or GBP 350,000 for married couples utilising transferable RNRB). The GBP 40,000 IHT cost of losing the full RNRB provides a benchmark against which to measure the income tax cost of accelerated drawdown.1617

7.7 Professional Boundaries

Accountants must observe the FCA perimeter throughout pension death benefit planning. The accountant's role encompasses tax modelling, IHT compliance, estate structuring analysis, and cross-professional coordination. Pension drawdown quantum, investment strategy, and fund selection remain regulated activities requiring referral to appropriately authorised financial advisors. The advisory framework presented here addresses the tax analysis that sits squarely within the accountant's competence.

Conclusion: The Accountant's Implementation Roadmap

The April 2027 inclusion of pension death benefits within IHT represents the most significant change to pension taxation since the abolition of the lifetime allowance in 2024. The 14-month implementation window demands structured action from accountancy practices.

Client segmentation should identify clients whose planning assumptions are now outdated: those with significant pension wealth relative to their estate, those currently relying on spousal bypass trusts, those with combined estates approaching or exceeding the GBP 2 million RNRB taper threshold, and those whose existing decumulation strategy prioritises pension preservation.

Cross-professional coordination is essential. Solicitors should review wills and pension nominations for alignment with the post-April 2027 regime. Regulated financial advisors should model drawdown strategies informed by the accountant's tax analysis. Pension administrators should be engaged early regarding the four-week valuation timeline and the withholding mechanism.

Ongoing monitoring remains necessary. HMRC operational guidance and draft regulations are anticipated for Legislation Day in July 2026.2 The interaction with the residence-based IHT regime (enacted from 6 April 2025 under Finance Act 2025 c.8 Part 2 Chapter 4) introduces layered complexity for internationally mobile clients, where the long-term UK resident test determines worldwide IHT liability including pension assets from April 2027.21 Further HMRC guidance on the interaction between pension IHT and the residence-based regime should be monitored as it becomes available.

The accountant's position as the professional holding the complete income, asset, and tax picture -- and as the professional most likely to be appointed as estate agent for IHT compliance purposes -- makes the coordination of pension death benefit planning a natural extension of existing practice. The technical demands are significant, but the advisory framework is clear: model the combined exposure, identify the planning opportunities, coordinate the professional response, and implement before April 2027.

CPD Declaration

Estimated Reading Time: 20 minutes Technical Level: Advanced Practice Areas: Pension Taxation, Inheritance Tax, Estate Planning, Tax Compliance

Learning Objectives

Upon completing this article, practitioners will be able to:

  1. Identify the six types of authorised lump sum death benefits under Finance Act 2004 ss.167-168 and their income tax treatment under the age-75 threshold framework
  2. Calculate the combined IHT and income tax exposure on pension death benefits for post-age-75 deaths, applying the income tax credit mechanism introduced by the Finance (No.2) Bill 2025-26
  3. Evaluate the impact of pension value inclusion on the residence nil-rate band GBP 2 million taper threshold for estates with significant pension wealth from April 2027
  4. Analyse the planning implications of the PR-led liability model for accountancy practices handling IHT compliance, including the withholding mechanism and compressed valuation timeline

Competency Mapping

  • ICAEW Code of Ethics: Professional Competence and Due Care (Section 130) -- maintaining knowledge of pension taxation and IHT developments
  • CIOT/ATT Competency Framework: Inheritance Tax and Trusts -- understanding pension death benefit IHT integration
  • AAT Professional Standards: Tax Compliance -- accurate IHT400 reporting for estates with pension assets

Reflective Questions

  1. How would the inclusion of pension values in the RNRB taper calculation affect current estate planning recommendations for clients with combined estates approaching GBP 2 million?
  2. What processes should the practice implement to manage the four-week pension valuation and six-month IHT payment timeline when acting as professional agent for estates with multiple pension schemes?
  3. How should the accountant's advisory approach to pension contributions and drawdown strategy change in light of the April 2027 IHT inclusion, while respecting the FCA perimeter on regulated pension advice?

Professional Disclaimer

The information presented reflects the regulatory and legislative position as of 26 February 2026. Regulations, tax rules, and professional guidance are subject to change. Readers should independently verify all information before acting and seek advice from appropriately qualified solicitors, financial advisors, or other professionals for their specific circumstances.

Neither WUHLD nor the author accepts liability for any actions taken or decisions made based on the content of this article. Professional readers are reminded of their own regulatory obligations and duty of care to their clients.

Footnotes

Footnotes

  1. ICAEW: Finance Bill 2025-26. https://www.icaew.com/technical/tax/towards-a-better-tax-system/budgets-and-legislation/finance-acts/finance-bill-2025-26 ↩ ↩2

  2. Finance (No.2) Bill -- Parliamentary Bills. https://bills.parliament.uk/bills/4042/news ↩ ↩2 ↩3

  3. GOV.UK: Reforming Inheritance Tax -- unused pension funds and death benefits (TIIN). https://www.gov.uk/government/publications/reforming-inheritance-tax-unused-pension-funds-and-death-benefits/inheritance-tax-on-unused-pension-funds-and-death-benefits ↩ ↩2 ↩3

  4. GOV.UK: Inheritance Tax -- unused pension funds and death benefits (policy paper). https://www.gov.uk/government/publications/inheritance-tax-unused-pension-funds-and-death-benefits/inheritance-tax-unused-pension-funds-and-death-benefits ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7

  5. GOV.UK: Tax on a private pension you inherit. https://www.gov.uk/tax-on-pension-death-benefits ↩ ↩2 ↩3

  6. Finance Act 2024 s.14 and Schedule 9 (Abolition of lifetime allowance). https://www.legislation.gov.uk/ukpga/2024/3/section/14/enacted ↩

  7. HMRC Pensions Tax Manual PTM173000: Lump sum allowance and lump sum and death benefit allowance. https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm173000 ↩

  8. HMRC Pensions Tax Manual PTM073010: Tax on authorised lump sum death benefits. https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm073010 ↩ ↩2 ↩3

  9. HMRC Pensions Tax Manual PTM072410: Beneficiary's flexi-access drawdown. https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm072410 ↩

  10. HMRC Pensions Tax Manual PTM071000: Death benefits -- essential principles. https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm071000 ↩ ↩2 ↩3

  11. HMRC Inheritance Tax Manual IHTM17037: Omission to exercise a right. https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm17037 ↩

  12. HMRC Inheritance Tax Manual IHTM17043: Contributions made whilst in ill-health. https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm17043 ↩

  13. GOV.UK: Inheritance Tax on pensions -- liability, reporting and payment -- Summary of responses. https://www.gov.uk/government/consultations/inheritance-tax-on-pensions-liability-reporting-and-payment/outcome/inheritance-tax-on-pensions-liability-reporting-and-payment-summary-of-responses ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13

  14. Aviva: April 2027 is coming -- what professionals need to know about retirement, death, and spousal bypass trusts. https://connect.avivab2b.co.uk/adviser/articles/news/platform-and-investments/april-2027-is-coming-what-professionals-need-to-know-about-retir/ ↩ ↩2

  15. IHTA 1984 s.7 and Schedule 1 (Rates of IHT -- 40% on chargeable transfers above nil-rate band). https://www.legislation.gov.uk/ukpga/1984/51/section/7 ↩ ↩2

  16. GOV.UK: Work out and apply the residence nil rate band for Inheritance Tax. https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band ↩ ↩2 ↩3

  17. Aberdeen Adviser TechZone: Residence nil rate band guide. https://techzone.aberdeenadviser.com/public/iht-est-plan/residence-nil-rate-band-guide ↩ ↩2 ↩3 ↩4 ↩5

  18. Evelyn Partners: Pensions liable to inheritance tax will change how savers use their wealth. https://www.evelyn.com/press-centre/all-press-releases/pensions-liable-to-inheritance-tax-will-change-how-savers-use-their-wealth/ ↩ ↩2 ↩3

  19. GOV.UK: Tax on your private pension contributions -- Annual allowance. https://www.gov.uk/tax-on-your-private-pension/annual-allowance ↩

  20. HMRC Inheritance Tax Manual IHTM45001: Reduced rate for gifts to charity. https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm45001 ↩

  21. Finance Act 2025 c.8 Part 2 Chapter 4 (Inheritance Tax: Long-term UK resident). https://www.legislation.gov.uk/ukpga/2025/8/part/2/chapter/4 ↩

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