Particle.news
Download on the App Store
10 ARTICLES
·
last wk.

UK Inheritance Tax Expansion to Include Pensions by 2027

Frozen thresholds and pension inclusion are set to double taxed estates, with record revenues and rising burdens on pensioners.

Image
Image
Image

Overview

  • Inheritance tax thresholds remain frozen until 2030, reducing their real value as asset prices rise.
  • Private pensions will be included in inheritance tax calculations starting April 2027, significantly broadening the tax base.
  • HMRC recorded a record £8.2 billion in inheritance tax receipts for 2024–25, with projections of an additional £14.3 billion by 2029–30.
  • The number of pensioners paying higher tax rates has doubled in four years, with over one million now facing 40% or higher income tax rates due to fiscal drag.
  • Surveys reveal widespread public unawareness of inheritance tax rules, with many families unprepared for the financial impact of upcoming changes.