IHT plan
Pension in estate
Before vs after 6 April 2027
| Scenario | Net estate | NRB | RNRB | Taxable | PET tax | Total 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
- 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.
- Budget for the £200,000.00 IHT increase (£200,000.00 → £400,000.00) when estate-planning for 6 Apr 2027 onwards.
- 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.
- 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.
- 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.