sm128 - Flipbook - Page 8
Retirement
Pensions and
Inheritance Tax:
Big changes
coming in 2027
Understanding how removing the pensions exemption
could affect your legacy
For decades, UK savers have relied on pensions not only for retirement
income but also as a highly tax-efficient way to pass on wealth. Under
current rules, pension pots generally fall outside your estate for Inheritance Tax
(IHT) purposes. However, a significant shift is on the horizon. From 6 April 2027,
the government will remove this long‑standing exemption, bringing unspent
pension wealth within the scope of IHT.
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