Pensions in Inheritance Tax 2027: Who Pays

Unused pension funds sit outside inheritance tax today, which is why pensions became a common way to pass wealth on. That ends on 6 April 2027, when most unused pension funds and pension death benefits are brought within the value of a deceased person's estate for inheritance tax (HMRC, Technical note: Inheritance Tax on pensions, UK). This briefing quantifies who is affected, using HMRC's own estimates alongside Office for National Statistics wealth data, and flags where figures are estimates rather than official statistics.

Two groups are affected in different ways. A first group of estates is pushed over the inheritance tax threshold for the first time by the value of a pension pot. A second, larger group already pays inheritance tax and will pay more. The Chancellor confirmed the reform at Budget 2025 on 26 November 2025, alongside a further one-year extension of the threshold freeze (HMRC, Inheritance Tax: unused pension funds and death benefits, published 26 November 2025). Figures are current as at July 2026 and are subject to change.

Executive summary

From 6 April 2027, most unused pension funds and pension death benefits are brought within the value of a deceased person's estate for inheritance tax across the UK (HMRC technical note).
HMRC estimates about 213,000 estates a year will hold inheritable pension wealth in 2027 to 2028, of which more than three-quarters are expected to have no inheritance tax liability (HMRC, 21 July 2025).
About 10,500 estates are estimated to become newly liable to inheritance tax from 2027 to 2028, roughly 1.5% of UK deaths (HMRC, 21 July 2025).
A further 38,500 estates already within inheritance tax are estimated to pay more once pension wealth is counted (HMRC, 21 July 2025).
Personal representatives, not pension scheme administrators, are liable to report and pay the inheritance tax due on unused pension funds from 6 April 2027 (HMRC technical note).
Death-in-service benefits from registered pension schemes are excluded from the charge, whether the scheme is discretionary or non-discretionary (HMRC, 21 July 2025).
Private pension wealth made up 35% of total household wealth in Great Britain over April 2020 to March 2022, the second-largest component after property at 40% (ONS, published 24 January 2025).
For context, 30,400 estates paid inheritance tax in 2023 to 2024, so the reform's affected population is large relative to the current taxpaying base (HMRC, published 30 July 2026).

Key findings

Each finding is a self-contained statement with a figure, a timeframe, a geography and a source. Figures produced by Fairchild Oldfield are labelled as estimates and set out in the original analysis.

Most unused pension funds and pension death benefits are brought into inheritance tax for deaths on or after 6 April 2027, UK-wide (HMRC technical note).
Around 213,000 estates a year are estimated to hold inheritable pension wealth in 2027 to 2028 across the UK (HMRC, 21 July 2025).
More than three-quarters of those 213,000 estates are estimated to have no inheritance tax to pay in 2027 to 2028 (HMRC, 21 July 2025).
About 10,500 estates are estimated to become newly liable to inheritance tax from 2027 to 2028, around 1.5% of UK deaths (HMRC, 21 July 2025).
A further 38,500 estates already liable to inheritance tax are estimated to pay more once pension wealth is included, UK-wide, for 2027 to 2028 (HMRC, 21 July 2025).
Personal representatives are liable to report and pay the inheritance tax on unused pension funds; beneficiaries become jointly and severally liable once benefits vest, from 6 April 2027 (HMRC technical note).
Personal representatives can direct a pension scheme administrator to withhold up to 50% of a benefit for up to 15 months after the end of the month of death, to meet the inheritance tax (HMRC technical note).
Death-in-service benefits payable from registered pension schemes are excluded from the charge from 6 April 2027 (HMRC, 21 July 2025).
Where a member dies aged over 75, death benefits remain subject to the beneficiary's income tax, in addition to any inheritance tax on the estate, from 6 April 2027 (HMRC, 21 July 2025).
Income tax will not be charged on the portion of relevant death benefits equal to the inheritance tax due on them, a relief to limit double taxation (HMRC, 21 July 2025).
The nil-rate band is frozen at £325,000 and the residence nil-rate band at up to £175,000 until 5 April 2031, extended a further year at Budget 2025 (gov.uk; HMRC, 26 November 2025).
Private pension wealth was 35% of total household wealth in Great Britain over April 2020 to March 2022, ranging from 28% in London to 42% in the North East and Scotland (ONS, published 24 January 2025).
30,400 estates incurred an inheritance tax charge in 2023 to 2024, equal to 4.72% of UK deaths, with a total liability of £7.03 billion (HMRC, published 30 July 2026).
The average inheritance tax bill across taxpaying estates was £231,000 in 2023 to 2024, a 9% rise on the prior year, before the pension reform takes effect (HMRC, published 30 July 2026).

What changes on 6 April 2027

Until 5 April 2027, unused pension funds generally fall outside a person's estate for inheritance tax, and can pass to beneficiaries free of that charge. From 6 April 2027, most unused pension funds and pension death benefits are added to the value of the estate and taxed at the standard inheritance tax rates, subject to the same nil-rate bands and spouse exemption as other assets (HMRC technical note, UK). The table sets out the fixed reference points that frame the charge.

Reference point	Level (July 2026)	Status
Nil-rate band	£325,000	Frozen to 5 April 2031
Residence nil-rate band	Up to £175,000	Frozen to 5 April 2031
Combined threshold, couple with home to descendants	Up to £1,000,000	Frozen to 5 April 2031
Standard inheritance tax rate	40%	36% if 10%+ of estate to charity
Taper threshold (residence band)	£2,000,000	Frozen to 5 April 2031
Pensions brought into inheritance tax	Most unused funds and death benefits	From 6 April 2027

Source: gov.uk/inheritance-tax; freeze extension per HMRC, Budget 2025 (26 November 2025). England and Wales default; inheritance tax is a UK-wide tax. Figures subject to change.

What the numbers mean: the spouse and civil partner exemption still applies, so pension funds left to a surviving spouse or civil partner generally pass free of inheritance tax on the first death (gov.uk). The charge bites mainly where a pension passes to other beneficiaries, such as adult children, and the estate as a whole exceeds the available nil-rate bands. Limitation: the estimates below predate the final legislation and any behavioural response, so the eventual affected population may differ.

Who is affected, and who is not

HMRC groups the affected population into three bands. The largest group holds pension wealth but pays no inheritance tax, because the estate stays within the nil-rate bands or passes to an exempt spouse. A smaller group is drawn into inheritance tax for the first time. A third group already pays and pays more.

Group (2027 to 2028, UK)	Estates a year	Effect of the reform
Estates holding inheritable pension wealth	~213,000	Total population in scope of the new rules
Of which: no inheritance tax due	more than ~160,000	More than three-quarters; within thresholds or spouse-exempt
Newly liable to inheritance tax	~10,500	Pushed over the threshold by pension value (~1.5% of UK deaths)
Already liable, now paying more	~38,500	Existing inheritance tax bill rises

Source: HMRC, Inheritance Tax on pensions: liability, reporting and payment, summary of responses, 21 July 2025. "More than ~160,000" is the arithmetic floor implied by HMRC's statement that more than three-quarters of 213,000 estates have no liability (0.75 × 213,000 = 159,750). Figures are HMRC estimates, described as upper limits, and exclude behavioural change. Estimate

What the numbers mean: the reform is concentrated. The great majority of people with a pension are not expected to pay inheritance tax because of it. The change concentrates on estates that already sit near or above the frozen thresholds, where a pension pot tips or deepens a liability. Limitation: HMRC's bands are modelled projections for a future year, not observed outcomes, and the 10,500 and 38,500 figures are presented as upper estimates that ignore how savers may change behaviour before 2027.

Why pensions matter to the tax base

Pensions are brought into inheritance tax because they hold a large and rising share of household wealth. Private pension wealth was the second-largest component of household wealth in Great Britain in the most recent Wealth and Assets Survey round, behind property.

Wealth component	Share of total household wealth
Net property wealth	40%
Private pension wealth	35%
Net financial wealth	less than 20%
Physical wealth	remainder

Source: ONS, Household total wealth in Great Britain: April 2020 to March 2022, published 24 January 2025. Great Britain (excludes Northern Ireland). ONS notes private pension wealth estimates are not directly comparable with earlier rounds because of a methodology change. Not comparable across rounds

What the numbers mean: because private pension wealth is about 35% of household wealth, moving it inside the inheritance tax base widens the tax meaningfully, even though only a minority of estates pay. Regional flag: the pension share of wealth ranged from 28% in London to 42% in the North East and Scotland over April 2020 to March 2022, so pensions form a larger slice of typical wealth outside the highest-value housing markets (ONS, 24 January 2025). Limitation: the ONS survey period is April 2020 to March 2022 and predates recent asset-price moves, so current shares may differ.

Definitions. "Unused pension funds" are amounts left in a pension that were not drawn down or used to buy an annuity before death. "Death benefits" are lump sums or income a scheme pays out on a member's death. "Personal representatives" are the executors or administrators responsible for an estate. "Death-in-service benefit" is a lump sum an employer's scheme pays if an employee dies while working, and is excluded from the 2027 charge (HMRC, 21 July 2025).

The reform interacts with an existing income tax rule. Where a member dies aged 75 or over, the pension death benefit is already taxable as income in the beneficiary's hands at their marginal rate. From 6 April 2027 the same pot can also count towards inheritance tax on the estate. To limit the overlap, the government confirmed that income tax will not be charged on the part of the death benefit equal to the inheritance tax paid on it (HMRC, summary of responses, 21 July 2025).

What the numbers mean: for a death before age 75, death benefits are generally free of the beneficiary's income tax, so inheritance tax is the main charge. For a death at or after age 75, both inheritance tax and the beneficiary's income tax can apply, which is why the combined effective rate on such pensions is a live point of debate. The worked model in the original analysis sets out the arithmetic transparently and labels it an estimate. Limitation: the exact combined rate depends on the estate's threshold position and the beneficiary's income tax rate, so no single headline figure applies to everyone.

What the Exchequer expects to raise

The measure is one of several inheritance tax changes forecast to lift receipts across the decade. Total inheritance tax receipts are already rising under frozen thresholds; the pension measure adds to that from 2027 to 2028.

Tax year	Forecast yield, pensions measure
2027 to 2028	~£0.64 billion
2028 to 2029	~£1.34 billion
2029 to 2030	~£1.46 billion

Source: HM Treasury and HMRC policy costing for bringing unused pension funds into inheritance tax, as scored by the Office for Budget Responsibility (Autumn Budget 2024). Reported figures vary slightly between OBR restatements; treat as a forecast range, not an outturn. Estimate These figures predate any behavioural response and the December 2025 reliefs package, and are subject to revision at each fiscal event.

What the numbers mean: the pension measure is forecast to raise on the order of £1.5 billion a year by the end of the decade, part of a broader rise in inheritance tax receipts. For scale, total inheritance tax liabilities were £7.03 billion in 2023 to 2024 (HMRC, published 30 July 2026), and OBR forecasts show receipts continuing to climb through the freeze (OBR, inheritance tax). Contradiction to flag: different published restatements of the pension costing show modestly different year-by-year figures, and behavioural change (people spending pensions down, or gifting earlier) could reduce the yield below the static estimate.

1. Affected-estate multiple Estimate

≈ 1.6×

What it shows. The reform's affected population (newly liable plus paying more) set against the estates that currently pay inheritance tax at all.

Formula. (10,500 newly liable + 38,500 paying more) ÷ 30,400 current taxpaying estates = 49,000 ÷ 30,400 ≈ 1.61.

Inputs. Affected estates from HMRC, 21 July 2025 (2027 to 2028). Current taxpaying estates, 30,400, from HMRC liabilities statistics, published 30 July 2026 (2023 to 2024).

Reading. For every estate paying inheritance tax on the latest official figures, the pension reform touches roughly 1.6 estates, either drawing them in or raising their bill.

Limitations. The two inputs are different years (2023 to 2024 versus a 2027 to 2028 projection). The 30,400 base will itself grow by 2027 through fiscal drag, so the true proportional uplift over the contemporaneous base is smaller than 1.6×. HMRC's 49,000 is described as an upper estimate. This is a scale indicator, not a precise ratio.

2. Pension-wealth exposure rate Estimate

≈ 4.9%

What it shows. Of estates that actually hold inheritable pension wealth, the share drawn into inheritance tax for the first time by the reform.

Formula. 10,500 newly liable ÷ 213,000 estates with pension wealth = 0.049, i.e. about 4.9%.

Inputs. Both figures from HMRC, 21 July 2025 (2027 to 2028, UK).

Reading. Around 1 in 20 estates with pension wealth is expected to become newly liable to inheritance tax because of the change. Counting estates that pay more (49,000 in total), the affected share of pension-holding estates is about 23% (49,000 ÷ 213,000).

Limitations. Derived from HMRC's own modelled counts, which are upper estimates and exclude behavioural change. It measures newly liable estates, not the size of the tax; a small share can still carry a large total. It says nothing about individual circumstances.

3. Illustrative combined tax on an over-75 pension Illustrative model

≈ 64%

What it shows. The combined effective tax rate where a £100,000 unused pension is inherited from someone who died aged over 75, the estate is already above its nil-rate bands, and the beneficiary pays higher-rate income tax.

Method. Inheritance tax at 40% on £100,000 = £40,000. Under the confirmed relief, income tax is not charged on the £40,000 equal to the inheritance tax; income tax at 40% applies to the remaining £60,000 = £24,000. Total tax = £40,000 + £24,000 = £64,000, an effective rate of 64%.

Inputs. Inheritance tax rate 40% (gov.uk); over-75 income tax treatment and the double-tax relief (HMRC, 21 July 2025); higher-rate income tax band 40% (gov.uk income tax rates).

Reading. The relief prevents tax on tax, but a large unused pension inherited by a higher-rate taxpayer from an over-75 can still lose most of its value to combined tax. At basic-rate income tax the same model gives 40% + (20% × £60,000 ÷ £100,000) = 52%.

Limitations. This is an illustration, not a calculation for any individual. It assumes the estate is already above its thresholds so the full pension is taxed at 40%, ignores the residence nil-rate band taper, personal allowances, and the beneficiary's other income, and applies only to deaths at or after age 75. Where the estate passes to a spouse, or sits within the nil-rate bands, no inheritance tax arises and the combined rate is far lower.

Recommended charts

Chart specifications for editors and data teams. Figures and sources are given so each can be built and checked. No images are embedded.

The three bands of pension estates. Stacked or waterfall chart of the 213,000 estates with pension wealth, split into no liability (more than ~160,000), newly liable (~10,500) and paying more (~38,500). Source: HMRC, 21 July 2025. Insight: the reform is concentrated on a minority. Citation-worthy because it corrects the "everyone with a pension will pay" framing.
Affected estates versus current taxpayers. Bar chart comparing 49,000 affected estates (2027 to 2028 estimate) with 30,400 estates that paid inheritance tax in 2023 to 2024. Sources: HMRC, 21 July 2025; HMRC liabilities statistics, 30 July 2026. Insight: the affected group is about 1.6× the current taxpaying base.
Forecast yield of the pension measure. Column chart of ~£0.64bn, ~£1.34bn and ~£1.46bn across 2027 to 2028, 2028 to 2029 and 2029 to 2030. Source: HM Treasury/HMRC costing, OBR (Autumn Budget 2024). Insight: about £1.5bn a year by the decade's end. Flag as forecast.
Pension share of wealth by region. Bar chart of private pension wealth as a share of household wealth, 28% London to 42% North East and Scotland, April 2020 to March 2022. Source: ONS, 24 January 2025. Insight: pensions are a bigger slice of typical wealth outside London.
Combined effective rate ladder. Simple bar chart of the illustrative combined tax rate on an over-75 pension by beneficiary income tax band (52% basic, 64% higher), labelled as a model. Sources: gov.uk; HMRC, 21 July 2025. Insight: makes the double-charge concrete without overstating it.

Methodology

Source selection. Primary UK government and statistical sources were preferred: HMRC policy documents and statistics, ONS wealth data, gov.uk guidance, and OBR-scored costings. Secondary commentary was used only to locate primary figures, not as the citation of record.

Inclusion rules. A statistic was included only where the exact figure, the year or date range, the geography and a named source could be confirmed. Each statistic carries its source at the point of use.

Exclusion rules. Figures that could not be tied to a named primary source were excluded. The widely quoted "average £34,000 increase" for the 38,500 estates paying more is attributed in secondary coverage to HMRC but was not confirmed in the primary documents reviewed here, so it is not stated as a finding.

Handling conflicts. Where restatements of the pension costing differed year by year, the figures are presented as a forecast range and flagged, not as a single official number. Where HMRC labels its estate counts as upper estimates excluding behavioural change, that caveat is carried through.

Derived figures. The three measures in the original analysis are calculated by Fairchild Oldfield from the cited public inputs, with the formula shown. Each is labelled an estimate or model and is not an official statistic.

Currency and geography. Data is current as at July 2026 and subject to change. Inheritance tax is UK-wide; wealth shares are Great Britain (ONS excludes Northern Ireland); the legal framing is England and Wales by default. Last updated July 2026.

Source quality ranking

Source	Used for	Tier
HMRC, Inheritance Tax on pensions: summary of responses (21 July 2025)	Estate counts, liability, PR responsibility, exclusions	Tier 1
HMRC, Technical note: Inheritance Tax on pensions	Scope, effective date, withholding mechanism	Tier 1
HMRC, Inheritance Tax: unused pension funds and death benefits (26 November 2025)	Budget 2025 confirmation, freeze extension	Tier 1
HMRC, Inheritance Tax liabilities statistics (30 July 2026)	Current taxpaying estates, total liability, averages	Tier 1
ONS, Household total wealth in Great Britain (24 January 2025)	Pension share of wealth, regional variation	Tier 1
OBR, Inheritance tax forecast; gov.uk/inheritance-tax; gov.uk income tax rates	Receipts trajectory, rates and thresholds	Tier 1
HM Treasury/HMRC policy costing (Autumn Budget 2024)	Year-by-year yield of the pension measure	Tier 2
Adviser and legal commentary (Royal London, Burges Salmon, AO Shearman)	Locating primary figures; context only	Tier 3

Tier 1: primary government, statistical and official bodies. Tier 2: official costings reported through fiscal documents where the exact restatement varies. Tier 3: reputable professional commentary, used to locate primary data, not as the citation of record.

For journalists

Most quotable statistics

About 10,500 estates a year become newly liable to inheritance tax from 2027 to 2028 as pensions enter the estate, around 1.5% of UK deaths (HMRC, 21 July 2025).
A further 38,500 estates already paying inheritance tax will pay more once pension wealth is counted (HMRC, 21 July 2025).
Around 213,000 estates a year hold inheritable pension wealth, but more than three-quarters are expected to owe no inheritance tax (HMRC, 21 July 2025).
Private pension wealth was 35% of total household wealth in Great Britain, April 2020 to March 2022, second only to property (ONS, 24 January 2025).
30,400 estates paid inheritance tax in 2023 to 2024, 4.72% of UK deaths, a total of £7.03 billion (HMRC, 30 July 2026).
Death-in-service benefits from registered schemes are excluded from the 2027 charge (HMRC, 21 July 2025).

Press summary

From 6 April 2027, most unused pension funds and pension death benefits will be counted as part of a person's estate for inheritance tax, ending their status as a tax-efficient way to pass wealth on. HMRC estimates about 213,000 estates a year will hold inheritable pension wealth, of which more than three-quarters will owe no inheritance tax. Around 10,500 estates, roughly 1.5% of UK deaths, are expected to become newly liable, while a further 38,500 estates already paying inheritance tax will pay more. Personal representatives, not pension schemes, must report and pay the tax, and can direct a scheme to hold back up to half of a benefit to meet it. Death-in-service benefits are excluded. Where a saver dies aged over 75, a pension can face both inheritance tax and the beneficiary's income tax, with a relief to prevent tax on tax. Figures are HMRC estimates, current as at July 2026 and subject to change.

Data limitations

HMRC's estate counts are modelled projections for 2027 to 2028, described as upper estimates that exclude behavioural change.
The year-by-year revenue figures are forecasts scored at Autumn Budget 2024 and vary between restatements; treat as a range.
ONS wealth shares cover April 2020 to March 2022 and are not comparable with earlier survey rounds.
The combined effective-rate figure is an illustrative model, not an official statistic, and depends on the estate and the beneficiary's tax position.
The commonly cited "£34,000 average increase" is not confirmed in the primary documents reviewed and is therefore excluded from the findings.

Recommended dataset fields

For a downloadable dataset supporting this briefing: metric_name; value; unit; tax_year_or_period; geography (UK / GB / England and Wales); source_organisation; source_title; publication_date; source_url; figure_type (official statistic / forecast / HMRC estimate / derived model); caveat_note.

Five suggested headlines

Pensions enter inheritance tax in 2027: 10,500 estates newly caught, HMRC estimates
Who really pays when pensions join inheritance tax? The numbers behind the 2027 change
Most pension savers will not pay: reading HMRC's 213,000-estate estimate
The 2027 pension tax, in three groups: exempt, newly liable, paying more
Over-75 pensions and the double charge: what the combined rate really looks like

Frequently asked questions

When do pensions become subject to inheritance tax?

From 6 April 2027, most unused pension funds and pension death benefits are brought within the value of a deceased person's estate for inheritance tax across the UK. The rule applies to deaths on or after that date. It was confirmed at Budget 2025 on 26 November 2025 (HMRC, Technical note: Inheritance Tax on pensions; HMRC, 26 November 2025).

How many estates will be affected?

HMRC estimates about 213,000 estates a year will hold inheritable pension wealth in 2027 to 2028. Of these, around 10,500 are expected to become newly liable to inheritance tax, roughly 1.5% of UK deaths, and a further 38,500 already-liable estates are expected to pay more. More than three-quarters of the 213,000 are expected to owe nothing (HMRC, 21 July 2025).

Will most people with a pension pay inheritance tax?

No, on HMRC's own estimates. More than three-quarters of the roughly 213,000 estates a year holding inheritable pension wealth are expected to have no inheritance tax to pay in 2027 to 2028, because the estate stays within the nil-rate bands or passes to an exempt spouse or civil partner (HMRC, 21 July 2025).

Who has to pay the tax on the pension?

From 6 April 2027, personal representatives, the executors or administrators of an estate, are liable to report and pay any inheritance tax on unused pension funds. Beneficiaries become jointly and severally liable once benefits vest. Personal representatives can direct a scheme to withhold up to 50% of a benefit for up to 15 months to meet the tax (HMRC, Technical note: Inheritance Tax on pensions).

Are death-in-service benefits included?

No. From 6 April 2027, death-in-service benefits payable from registered pension schemes are excluded from the inheritance tax charge, whether the scheme is discretionary or non-discretionary. They remain outside the value of the estate for this purpose (HMRC, summary of responses, 21 July 2025).

Can a pension be taxed twice from 2027?

Where a member dies aged 75 or over, a death benefit can face both inheritance tax on the estate and the beneficiary's income tax on drawdown. To limit this, income tax is not charged on the part of the benefit equal to the inheritance tax paid on it. For deaths before age 75, death benefits are generally free of the beneficiary's income tax (HMRC, 21 July 2025).

Are pensions left to a spouse taxed?

The spouse and civil partner exemption continues to apply, so unused pension funds left to a surviving spouse or civil partner generally pass free of inheritance tax on the first death. The charge from 2027 mainly affects pensions passing to other beneficiaries where the estate exceeds the available nil-rate bands (gov.uk, inheritance tax; HMRC, 21 July 2025).

How much will the change raise for the Exchequer?

The measure was scored at Autumn Budget 2024 to raise on the order of £0.64 billion in 2027 to 2028, about £1.34 billion in 2028 to 2029 and about £1.46 billion in 2029 to 2030. These are forecasts that predate behavioural change and vary between restatements, so they should be read as a range (HM Treasury/HMRC costing, OBR).

What are the inheritance tax thresholds in 2027?

The nil-rate band is £325,000 and the residence nil-rate band is up to £175,000, both frozen until 5 April 2031 after a further one-year extension at Budget 2025. A couple leaving a home to direct descendants can pass up to £1,000,000 before inheritance tax. The standard rate is 40% (gov.uk; HMRC, 26 November 2025).

Does this apply in Scotland and Northern Ireland?

Inheritance tax is a UK-wide tax, so the 2027 pension change applies across the United Kingdom. The wealth-share figures cited here are for Great Britain, because the ONS Wealth and Assets Survey excludes Northern Ireland. Succession law differs between the UK nations, but the inheritance tax treatment of pensions is the same (HMRC; ONS, 24 January 2025).

About Fairchild Oldfield

The Fairchild Oldfield team brings together estate planning, tax and client care, working with families across England and Wales. This research briefing reports public data on the 2027 pension inheritance tax change.

Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This briefing is general information and data reporting, not legal, tax or financial advice.

Important: This briefing is general information and factual data reporting only, and is not legal, tax or financial advice. Reading it does not create a professional relationship. It is based on the law of England and Wales by default, while inheritance tax is a UK-wide tax and other UK jurisdictions differ in succession law. Figures are drawn from named public sources, are current as at July 2026, and are subject to change. Statistics marked as estimates, forecasts or models are not official statistics. Before acting, many people choose to seek advice from a suitably qualified professional, such as a solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider individual circumstances.

Pensions in Inheritance Tax from 2027: Who Pays