Pensions & IHT from 2027

Linton

https://forums.moneysavingexpert.com/discussion/comment/81881267#Comment_81881267

Would you have preferred the government to say nothing until every last detail was worked out? Is it not better to give some fore-warning? It probably could not be kept a secret anyway.

Sadly, Government has to continue meddling with the tax system because every change opens up new opportunities for tax avoidance.

Pension flexibility was (presumably) introduced to enable people to provide adequate provision for their retirement whilst alive, not as a means for reducing the tax that would need to paid after death.

It is difficult to see charging IHT on pensions from which withdrawals are taxed as unfair double taxation. It puts the beneficiaries in much the same position as if the deceased had withdrawn the pension money themsleves. Why should one route be deemed unfair and the other not?

SavvySaver2026

I've been trying to figure out the actual impact of this on my own situation and
found it really hard to get concrete numbers. Ended up using a free IHT calculator
that has a "2027 pension changes" toggle — you put in your numbers and can flip it
on/off to see the difference.

For my situation (house + pension + some savings), it added about £36k to the IHT
bill. Was a bit of a wake-up call to be honest.

simplelpa.co.uk/inheritance-tax-calculator

Might be useful for anyone else in this thread trying to work out where they stand