The countdown to April 2027: UK pensions, inheritance tax and opportunities for expatriates

Starting April 6, 2027, the United Kingdom will expand its inheritance tax (IHT) framework to include unused pension funds and associated death benefits. This policy change marks the first time such assets will be subject to IHT, impacting the estate planning strategies of UK residents and expatriates alike.

The shift represents a significant adjustment to the UK tax landscape, requiring individuals to reassess how pension assets are managed within their broader estates. The inclusion of these funds is expected to have notable implications for families and expatriates who previously relied on the exclusion of pension pots from inheritance tax calculations.