Overview
- From April 2027, unused pension savings will be included in estate valuations for inheritance tax, ending their current exclusion.
- Analysis using HMRC data suggests more than 16,000 estates will exceed £2 million by 2030/31, triggering tapering of the £175,000 residence nil‑rate band.
- Quilter estimates about 6,400 estates will newly cross the £2 million threshold once pensions are counted, with planners urging some retirees to revisit drawdown strategies.
- The Office for Budget Responsibility projects annual inheritance tax receipts will climb to £14.5 billion by 2030‑31, reflecting fiscal drag from frozen thresholds and rising asset values.
- From April 6, the 100% business and agricultural property relief will be capped at £2.5 million, and wealth managers are urging households to use ISA, CGT, pension and gifting allowances before the tax‑year deadline.