Overview

• Starting April 6, 2027, unused private pensions will be subject to inheritance tax, ending their long-standing exemption.
• Over 56% of savers with pension wealth over £300,000 plan to increase spending, with 75% prioritizing holidays to reduce taxable estates.
• The Budget Responsibility projects inheritance tax revenues to rise to £11.7 billion in 2027–28, the first year of the reforms.
• Advisers recommend strategies like early withdrawals, gifting, life insurance trusts, and spousal transfers to mitigate tax burdens.
• Detailed legislation is pending, but Pension Scheme Administrators will handle compliance, with exemptions for spouses, dependents, and charities.