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IHT plan

Pension in estate

Before vs after 6 April 2027

ScenarioNet estateNRBRNRBTaxablePET taxTotal IHT
Pension out (current rules)£1,000,000.00£325,000.00£175,000.00£500,000.00£0.00£200,000.00
Pension in (from 6 Apr 2027)£1,500,000.00£325,000.00£175,000.00£1,000,000.00£0.00£400,000.00
Delta£500,000.00—−£0.00——£200,000.00

Primary death date 2027-04-06 · rate on death estate: 40% standard

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Ordered next steps

  1. File this plan against death date 2027-04-06 (on/after 6 Apr 2027): treat the £500,000 unused pension as inside the estate when briefing personal representatives.
  2. Budget for the £200,000.00 IHT increase (£200,000.00 → £400,000.00) when estate-planning for 6 Apr 2027 onwards.
  3. List every registered pension arrangement for the personal representatives now — from 6 Apr 2027 they must value the £500,000 notional pension property and report it with the estate.
  4. Claim the missing 100% transferable NRB (£325,000.00) and 100% transferable RNRB (£175,000.00) from the first death before 2027-04-06 — worth £200,000.00 less IHT on this plan.
  5. Share this plan dated 2027-04-06 with your adviser or executor now, and diary a re-check after the next Autumn Budget or any HMRC guidance update — do not change nominations, withdrawals or gifts on this illustration alone.

Educational illustration only — not tax, legal or financial advice. Real estates involve Business/Agricultural Relief, deed variations, trusts, domicile, and scheme-specific death benefits. Death-in-service benefits from registered schemes remain outside IHT. Confirm figures with a regulated adviser or solicitor before acting.