Guides to pensions and inheritance tax
Plain-English guides to the rules that shape your plan, kept up to date for 2026/27 and the changes coming in April 2027.
Latest guides
Inheritance tax on pensions from April 2027
Most unused pensions join the estate for deaths from 6 April 2027. What’s included, who pays, and what to do now.
Inheritance tax thresholds 2026/27
The nil-rate band, the residence nil-rate band, the £2 million taper and the gift exemptions, with examples.
Pension allowances 2026/27
Annual allowance, tapering, carry forward, tax-free cash, the State Pension and the dates that change by 2029.
Farm and business relief after April 2026
How the new allowance for 100% agricultural and business relief works, and what farming and business families should review.
Tools
What’s changing, and when
Five dates that shape pension and inheritance tax planning between now and 2031.
Farm and business relief capped
100% agricultural and business relief now applies to the first £2.5 million of qualifying assets per person (transferable between spouses). Above that, relief is 50%.
Pensions enter the estate
Most unused pension funds and death benefits count towards inheritance tax for deaths on or after this date. Death-in-service benefits are excluded.
Minimum pension age rises to 57
The earliest age most people can take money from a personal pension moves from 55 to 57. The State Pension age is also reaching 67 by 2028.
Salary sacrifice capped
Only the first £2,000 a year of pension contributions made by salary sacrifice will stay free of National Insurance.
Allowance freeze ends
The £325,000 nil-rate band, £175,000 residence nil-rate band and £2.5 million relief allowance are fixed until this date.
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