Tristan Noyes suggests what should be considered when pensions lose their inheritance tax exemption from April 2027.
I once heard someone say: “My house is for my retirement; my pension is for the kids.” They were broadly saying that, as pensions are not included in an individual’s inheritance tax (IHT) estate, it makes sense to spend taxable assets first – particularly the equity they had built up in their house – and preserve the pension, largely untouched, to pass on free of IHT.
This encapsulated the general logic of estate planning for many years. However, from April 2027, that logic changes.
