HMRC details inheritance tax changes for pensions

The reforms are intended to address the increasing use of pension schemes for wealth transfer and to standardize the IHT treatment across different pension types. The technical note outlines how "notional pension property" will be identified, valued, and allocated to beneficiaries, and clarifies the responsibilities of personal representatives and pension scheme administrators in reporting and paying any IHT due. It also touches upon the use of withholding notices and a pensions direct payment scheme.

HMRC has indicated that further secondary legislation, guidance, and supporting materials will be published ahead of the April 2027 implementation. Draft regulations concerning information sharing requirements are expected for technical consultation in spring 2026, with the regulations themselves to be laid later that year. A clarification issued on May 29, 2026, specified that personal representatives will not be liable for additional tax on property covered by a clearance certificate.