Free calculator
Pension inheritance tax calculator for April 2027.
Estimate how unused defined-contribution pension value changes an estate's IHT position before and after 6 April 2027, with the age-75 income-tax interaction shown separately.
Before and after April 2027
Combined post-2027 tax is estate IHT plus beneficiary income tax after FA 2026 s70 relief for the pension's attributed IHT.
Pension burden
£260,000
52.0% of pension
| Measure | Before 6 Apr 2027 | From 6 Apr 2027 |
|---|---|---|
| Estate IHT | £0 | £200,000 |
| Pension-attributed IHT | £0 | £100,000 |
| Beneficiary income tax | £200,000 | £160,000 |
| Whole-estate tax total | £200,000 | £360,000 |
Difference from pre-2027 total: £160,000
Worked example
Estate £500,000, unused pension £500,000, £325,000 nil-rate band plus £175,000 RNRB, death after age 75, higher-rate beneficiary. These figures track the inputs above.
- Pre-2027 IHT is £0: the estate excluding the unused pension is charged above the available bands.
- Post-2027 IHT is £200,000: the unused pension joins the estate before the charge above the bands.
- Pension-attributed IHT is £100,000: the estate-rate share of that IHT falling on the unused pension.
- Income tax after relief is £160,000: the beneficiary's marginal rate on the pension after s70 relief for the attributed IHT.
- Pension-specific burden is £260,000, or 52.0% of the pension.
Keep these figures
EnoughDay will carry only the fields this calculator identifies. You will review wrapper totals before the plan can be saved.
- Unused pension balance
- Estate excluding pension remains context only
Methodology and sources
Checked 2026-07-03. The calculator uses integer pence, rounds pension-attributed IHT to the nearest penny, and floors income tax to the penny.
Pre-2027 IHT is calculated on the estate excluding unused pension. From 6 April 2027, the post-2027 calculation includes unused pension value in the estate for IHT.
RNRB taper interpretation: this page treats unused pension value as part of the post-2027 estate-value test because FA 2026 s66 treats the member as beneficially entitled immediately before death. Interpretation — HMRC operational guidance pending.
Estate-rate attribution follows the IHTM26122 convention used here: pension-attributed IHT equals total IHT multiplied by pension value divided by estate plus pension value.
FAQ
Do pensions pay inheritance tax from 2027?
From 6 April 2027, most unused pension funds and death benefits are included in the estate for IHT. Death-in-service benefits and some dependant pensions are outside the HMRC policy paper scope.
What is the pension double tax after 75?
If death is at or after age 75, inherited pension withdrawals are generally income taxable for the beneficiary. From April 2027 the pension can first bear an attributed share of IHT, and FA 2026 s70 relief excludes that IHT-paid amount from the income-tax base.
Does spouse exemption still apply to pensions?
Transfers to a spouse or civil partner generally remain exempt from IHT (residence-based limits can apply). This calculator still applies age-75 income tax on later spouse drawdowns when that age band is selected.
Does the residence nil-rate band taper include pensions after 2027?
This page treats unused pension value as part of the post-2027 estate-value test. That is an interpretation of FA 2026 s66; the methodology flags that HMRC operational guidance is pending.
What happens before age 75?
The calculator assumes no beneficiary income tax before age 75 within the lump sum and death benefit allowance, so the displayed post-2027 change is IHT only.