Inheritance Tax Changes on Pensions from 2027

What It Means for You and How Hawkins Ryan Solicitors Can Help

From 6 April 2027, significant changes to inheritance tax (IHT) rules will come into effect, impacting how pension funds are treated for IHT purposes. Chancellor Rachel Reeves recently confirmed that most unused pension funds will be included in an individual’s estate when calculating IHT, a shift that could affect many families and estates, especially here in King’s Lynn and the wider Norfolk rural community we serve.

At Hawkins Ryan Solicitors, we understand the complexities these changes will bring and are committed to providing clear, practical guidance to help our clients navigate this evolving landscape. Andrew Stevenson, Partner and Head of Department, shares his perspective:

"These changes represent a fundamental shift in estate planning. For many, pensions have been a valuable way to pass wealth on free of inheritance tax. From 2027, that will no longer be the case for most pension funds. It’s essential that individuals review their estate plans now to understand the potential impact and explore strategies to mitigate unexpected tax liabilities."

Why This Matters for Our Clients

For our clients in King’s Lynn and the surrounding rural areas, these changes could have serious implications. Many in our community rely heavily on pension savings for retirement and inheritance planning. The new rules may increase the complexity of estate administration and potentially lead to longer probate processes.

Andrew Stevenson explains: 

"We expect an increase in probate delays as pension scheme administrators and executors navigate the new reporting and payment requirements. Our role will be crucial in ensuring that estates are managed efficiently and compliantly, minimising delays and unexpected costs for families."

How Hawkins Ryan Solicitors Supports You

Navigating these changes requires expert legal advice tailored to your unique circumstances. Hawkins Ryan Solicitors offers:

Comprehensive estate planning reviews to assess the impact of the new IHT rules on your pension and overall estate.

Strategic advice on mitigating IHT exposure, including potential pension drawdown strategies, gifting options, and trust arrangements.

Efficient probate and estate administration services to handle the increased complexity arising from these changes.

Clear, empathetic communication to help you understand your options and make informed decisions.

"Our commitment is to provide clarity and confidence to our clients during this period of change," says Andrew Stevenson. "By acting early and working closely with financial advisors, we can help clients protect their wealth and ensure their wishes are fulfilled."

Looking Ahead

The government has frozen the IHT nil-rate band at £325,000 until 2030, making it even more important to plan carefully. With these upcoming changes, now is the time to review your estate plan and pension arrangements.

 At Hawkins Ryan Solicitors, we combine extensive experience with a client-centred approach to help individuals and families in King’s Lynn and beyond prepare for these changes with confidence.

If you would like to discuss how these changes may affect you or your family, please contact us to arrange a consultation.

Andrew Stevenson

Partner