Overview

• From April 2027, unspent private pension savings will be counted in a deceased person’s estate for Inheritance Tax, HMRC has confirmed.
• Quilter calculates a typical working‑age single homeowner in England with an average‑priced property and a £415,000 pension could face a £82,158 bill at rates of up to 40% above thresholds.
• Liabilities vary sharply by location and ownership: a London case with sole ownership of an average home plus a £415,000 pension is estimated at £192,254, falling to £129,127 if the home is jointly owned.
• Cohabiting households are more exposed because they do not benefit from spousal exemptions or transferable allowances available to married couples.
• The Treasury says more than 90% of estates will still pay no IHT, as ministers also consider curbs on unlimited tax‑free gifts that advisers warn could capture routine family support.