UK Pension IHT Changes: What You Need to Know

The Inheritance Tax treatment of UK pensions is changing. From 6 April 2027, most unused pension funds and pension death benefits will be brought within the value of an individual's estate for UK Inheritance Tax purposes.

For people who have built up pensions in the UK, including those who now live overseas, this could change the role those assets play within wider retirement and estate planning. Pensions that may previously have been considered separately for Inheritance Tax purposes will increasingly need to be looked at alongside property, investments, savings and other assets.

Our free guide explains what is changing, who may be affected and the questions worth considering before the new rules take effect. It also looks at the particular considerations for internationally mobile individuals, where UK pensions may sit alongside assets, beneficiaries and tax obligations in more than one country.

• What is changing to the Inheritance Tax treatment of pensions from 6 April 2027
• Which pension funds and death benefits may fall within the new rules
• How the treatment of pension wealth before and after April 2027 compares
• Why your beneficiaries and wider estate can affect the potential IHT position
• What the changes could mean if you live outside the UK but retain UK pensions
• How Inheritance Tax and Income Tax can interact when pension benefits are inherited
• Why transferring or withdrawing pension funds is not automatically the right response
• The key questions to consider when reviewing your pensions, retirement income and estate planning

This guide is designed for:

• UK pension holders who now live overseas
• British expatriates with pensions accumulated during their time in the UK
• Individuals with significant unused pension wealth or several UK pension arrangements
• Those who have previously viewed their pension as an asset to pass on to beneficiaries
• Internationally mobile individuals and families with assets or beneficiaries across several countries
• Anyone who wants to understand how the April 2027 changes could affect their retirement and estate planning

This material is provided for general information only and does not constitute financial, investment, pension, tax or legal advice, or a personal recommendation to transfer, retain or otherwise alter any pension arrangement. 

The changes taking effect from 6 April 2027 do not mean that transferring a UK pension is appropriate, or that transferring a pension will remove or reduce an Inheritance Tax liability.

Tax treatment depends on individual circumstances, country of residence and applicable UK and local tax laws and may change in the future. The inclusion of pension funds or death benefits within an estate does not necessarily mean that Inheritance Tax will be payable.

This campaign is intended for individuals resident outside the United Kingdom and is not directed at UK-resident individuals. Hoxton services are only available in jurisdictions where the relevant Hoxton entity is appropriately authorised, licensed or otherwise permitted to provide the relevant services.

The availability and scope of services, and the regulatory protections applicable to you, may vary depending on your country of residence and the Hoxton entity providing the service. Any enquiry will be subject to an assessment of your country of residence and applicable regulatory requirements before any regulated advice or service is provided.

Where a UK pension contains safeguarded benefits, including defined benefit benefits, additional UK regulatory requirements apply and specialist UK pension transfer advice may be required.

You should not take, or refrain from taking, action based solely on this material and should obtain appropriate professional advice based on your individual circumstances.