{"id":127654,"date":"2026-10-26T13:15:00","date_gmt":"2026-10-26T13:15:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=127654"},"modified":"2026-10-26T12:40:18","modified_gmt":"2026-10-26T12:40:18","slug":"hmrc-inheritance-tax-change-families-bills","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/hmrc-inheritance-tax-change-families-bills\/","title":{"rendered":"HMRC Inheritance Tax Change Could Leave Thousands of Families Facing Bigger Bills"},"content":{"rendered":"\n

The changes are expected to affect families inheriting pension wealth, although most estates will continue to have no inheritance tax liability. Government estimates suggest that 10,500 estates <\/strong>will become liable for the tax for the first time, while another 38,500 will face higher payments under the revised arrangements.<\/p>\n\n\n\n

Thousands of Estates Face Higher Inheritance Tax Bills<\/strong><\/h2>\n\n\n\n

According to HM Revenue and Customs (HMRC<\/a>), around 213,000 estates are expected to contain inheritable pension wealth during the 2027-28 tax year. Of these, 10,500 will become liable for inheritance tax where previously no payment would have been required.<\/p>\n\n\n\n

A further 38,500 estates will pay more inheritance tax than under the existing arrangements. The average inheritance tax bill is expected to increase by approximately \u00a334,000<\/strong> when pension assets are included in estate calculations.<\/p>\n\n\n\n

The Government has acknowledged that these estimates do not account for potential changes in people’s financial behaviour following the announcement. As a result, the figures should be regarded as an upper limit<\/strong> rather than a definitive number of affected estates.<\/p>\n\n\n\n

The measure was first announced in the Autumn Budget 2024 and is scheduled to take effect on 6 April 2027. It will cover most unused pension funds and pension death benefits, bringing them within the inheritance tax framework alongside other inherited assets.<\/p>\n\n\n\n

HMRC says the reform is intended to address inconsistencies <\/strong>between different pension arrangements. The department has argued that pension <\/a>schemes have increasingly been used and marketed as vehicles <\/strong>for transferring wealth after death rather than solely funding retirement.<\/p>\n\n\n\n

Certain benefits will remain outside the changes. These include death-in-service benefits payable from registered pension schemes and dependant’s scheme pensions from defined benefit or collective money purchase arrangements.<\/p>\n\n\n\n

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What UK inheritance tax takes, by estate size:

\u00a3500,000: \u00a30
\u00a3750,000: \u00a3100,000
\u00a31,000,000: \u00a3200,000
\u00a31,500,000: \u00a3400,000
\u00a32,000,000: \u00a3600,000
\u00a32,350,000: \u00a3810,000

(Single person, home left to children, using the \u00a3325,000 nil-rate band and \u00a3175,000 residence band.)

Read the\u2026<\/p>— Jared Ashmole (@InvestorJared) October 25, 2026<\/a><\/blockquote>