IHT plan
Pension out of estate
Before vs after 6 April 2027
| Scenario | Net estate | NRB | RNRB | Taxable | PET tax | Total IHT |
|---|---|---|---|---|---|---|
| Pension out (current rules) | £400,000.00 | £325,000.00 | £0.00 | £400,000.00 | £18,000.00 | £178,000.00 |
| Pension in (from 6 Apr 2027) | £400,000.00 | £325,000.00 | £0.00 | £400,000.00 | £18,000.00 | £178,000.00 |
| Delta | £0.00 | — | −£0.00 | — | — | £0.00 |
Primary death date 2026-10-13 · rate on death estate: 40% standard
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Ordered next steps
- File this plan against death date 2026-10-13 (before 6 Apr 2027): the unused pension is modelled outside the estate under current rules — re-run with a post-5 Apr 2027 date to see the new rules.
- Note IHT is unchanged at £178,000.00 under both rule sets for death date 2026-10-13 — the 6 Apr 2027 pension change does not bite on these inputs.
- Document the 1 gift(s) totalling £400,000.00 made within 7 years of 2026-10-13, with dates and £3,000 annual-exemption use — they consume NRB before the death estate.
- Before your next will review, confirm whether any residence passes to direct descendants — none is flagged, so £0.00 RNRB is applied and up to £175,000.00 goes unclaimed.
- Claim the missing 100% transferable NRB (£325,000.00) and 100% transferable RNRB (£0.00) from the first death before 2026-10-13 — worth £118,000.00 less IHT on this plan.
- Share this plan dated 2026-10-13 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.