Overview

• From April 2027, unspent private pensions will be counted in a person’s estate for inheritance tax regardless of age at death, ending the current pre‑75 tax‑free treatment.
• Quilter estimates a single homeowner with an average‑priced English property (£290,395) and a £415,000 pension would face an inheritance tax bill of about £82,158 under the change.
• For London, pairing an average home (£565,637) with a £415,000 pension implies a liability of roughly £192,254, with joint ownership lowering but not eliminating the bill and cohabiting couples lacking spousal relief most exposed.
• GB News’ breakdown cites new liabilities even for joint owners in Wales, Scotland and Northern Ireland, at about £23,891, £21,392 and £20,007 respectively.
• HMRC took a record £7.5bn from inheritance tax in the year to June 2025 as the £325,000 nil‑rate band remains frozen to 2030, and advisers urge early planning given seven‑year gift rules and limited annual exemptions.