Threads / Inheritance Tax Reforms / Reforming Inheritance Tax — unused pension funds and death …
Policy Paper Published 21 Jul 2025 HM Revenue & Customs ↗ View on GOV.UK

Reforming Inheritance Tax — unused pension funds and death benefits

This measure will bring unused pension funds and death benefits into scope of Inheritance Tax from 6 April 2027.

▤ Verbatim text from source document

As announced at Autumn Budget 2024, the government will bring most unused pension funds and death benefits into scope of Inheritance Tax from 6 April 2027.

From this date, personal representatives will be liable to report and pay any Inheritance Tax due on unused pension funds or death benefits. All death in service benefits payable from a registered pension scheme will be excluded from the value of an individual’s estate for Inheritance Tax purposes from 6 April 2027.