Inheritance tax and pensions: what advisers need to know

On 21 July 2025, the UK Government published draft legislation that proposes significant changes to the tax treatment of unused pension savings and death benefits. From April 2027, in most cases, these benefits will be brought within the scope of inheritance tax (IHT).

In this special Paraplanners’ Assembly recording, host Richard Allum is joined by Barnett Waddingham’s James Jones-Tinsley to unpack what the changes could mean for advisers and their clients.

Together, they explore:

• Which pension benefits are affected (and which aren’t).
• Who will be responsible for paying any tax due.
• How the proposed income tax offset could work in practice.
• The expected implementation timeline.
• Practical steps to take now to help clients prepare.

While the legislation is still making its way through Parliament and could change, this video offers a clear and timely overview of the current position, and what you should be thinking about for clients with larger pension pots.