Pensions and inheritance tax from April 2027

From 6 April 2027 the money left in your pensions when you die counts as part of your estate for inheritance tax.

What is in the guide

What the April 2027 rule covers and what it excludes, including death in service
Who is affected, with the 2026/27 nil rate band and residence nil rate band
Four worked examples with the tax in pounds, one of which pays nothing
Income tax for whoever inherits, for deaths before 75 and at 75 or over
Who pays the tax and how it can be paid out of the pension
Six options with the trade-off of each, from expression of wish forms to life cover in trust
A checklist of documents to gather before speaking to an adviser

Updated 26 October 2026.