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) | £1,700,000.00 | £325,000.00 | £175,000.00 | £1,200,000.00 | £0.00 | £480,000.00 |
| Pension in (from 6 Apr 2027) | £2,200,000.00 | £325,000.00 | £75,000.00 | £1,800,000.00 | £0.00 | £720,000.00 |
| Delta | £500,000.00 | — | −£100,000.00 | — | — | £240,000.00 |
Pension inclusion pushes the estate over the £2m RNRB taper threshold — RNRB falls by £100,000.00.
Primary death date 2027-06-01 · rate on death estate: 40% standard
Ordered next steps
- Death date 2027-06-01 is on/after 6 Apr 2027 — unused pension (£500,000) is modelled inside the estate.
- IHT under current rules (pension out): £480,000.00 · under Apr 2027 rules (pension in): £720,000.00 · delta £240,000.00.
- Pension inclusion pushes the estate over the £2m RNRB taper threshold: RNRB falls by £100,000.00 (worth ~£40,000.00 at 40%).
- List every registered pension arrangement for personal representatives — from Apr 2027 they must value notional pension property and report it with the estate.
- Review spouse/civil-partner exemption and transferable NRB/RNRB on the surviving partner’s death; unused bands transfer only if claimed.
- Before changing nominations, withdrawals or gifting, take regulated financial and legal advice — this tool does not model Income Tax on pension death benefits or trust structures.
- Keep a dated share of this plan for your adviser or executor, and re-check after the Autumn Budget or any HMRC guidance update.
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.