Overview
- The government rejected calls to extend the IHT payment window, keeping tax due at the end of the sixth month after death.
- From 6 April 2027, most unused pension pots and pension death benefits will be counted in the estate for inheritance tax.
- Personal representatives must report and pay any IHT due on these pension benefits, and scheme administrators can withhold 50% for up to 15 months or pay HMRC direct on request.
- Official estimates point to about 10,500 extra estates paying IHT each year and roughly £1.46 billion raised annually by 2030.
- Surveys show low public awareness, with 89% of adults reporting little or none, and advisers urging people to revisit withdrawal plans and which assets they pass on.