HMRC has released a technical update confirming that more guidance on pension inheritance tax changes will be issued between now and April 2027, with final rules not expected until Spring 2027 — shortly before implementation.
Industry experts have warned this may leave pension schemes with limited time to update member communications and systems.
Under the new rules from April 2027, unused defined contribution pension funds and some other pensions will be included in inheritance tax calculations. Personal Representatives will be responsible for identifying all pension arrangements, gathering valuations from providers, and reporting the information to HMRC through a new online service.
Transfers to UK-resident spouses and civil partners will continue to be exempt from inheritance tax.