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Industry Unveils Simpler Tax Models to Challenge UK’s 2027 Pension Inheritance Tax Plan

TISA’s proposal to exempt pension pots under £90,000 from inheritance tax aims to simplify family paperwork with a flat or marginal levy on larger funds.

In her budget in October, Rachel Reeves said that pensions would be subject to inheritance tax from April 2027

Overview

  • HM Treasury insists unused private pensions will enter the inheritance tax net from April 2027 to protect retirement savings and keep over 90 percent of estates tax-free.
  • TISA and Oxford Economics formally submitted two alternatives that strip pensions from estate calculations and tax inheritances at beneficiaries’ marginal income rates or via a flat “inheritable pension tax charge.”,