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
Ordered next steps
- Death date 2026-10-13 is before 6 Apr 2027 — unused pension is modelled outside the estate (current rules).
- IHT under current rules (pension out): £178,000.00 · under Apr 2027 rules (pension in): £178,000.00 · delta £0.00.
- No home value flagged to direct descendants — RNRB not applied. If a residence passes to children/grandchildren, re-run with that value.
- Record failed PETs with dates and use of the £3,000 annual exemption; gifts within 7 years consume NRB before the death estate.
- 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.