How to Protect Your Pension from Inheritance Tax Changes Coming in 2027

In this week's WealthTalk episode, Christian and Kevin dive deep into the major changes coming to inheritance tax on pensions from April 2027. 

They explain how these changes impact UK pension holders, why awareness and action are critical, and practical steps to protect your legacy. 

The discussion covers the basics of inheritance tax, the new rules for pensions, the benefits of consolidating pensions, and how SSAS pensions can offer unique advantages for business owners and families. 

The episode is packed with actionable advice, real-life scenarios, and essential tips to help listeners safeguard their wealth for future generations.

Key Takeaways:

1. What’s Changing: From April 2027, pension assets will be included in your estate for inheritance tax purposes, potentially increasing tax bills for families.

2. How Inheritance Tax Works: Understanding nil rate bands, residence nil rate bands, and how thresholds apply to individuals and couples.

3. Why Consolidate Pensions: Multiple pensions can mean multiple fees and administrative headaches—consolidation can simplify estate planning and reduce costs.

4. SSAS Pensions: How Small Self-Administered Schemes can offer flexibility, family involvement, and strategies to mitigate inheritance tax.

5. Gifting Strategies: The difference between gifting from capital (subject to seven-year rule) and gifting from income (no seven-year rule).

6. The Role of Wills & Trusts: Why pensions usually sit outside your will, and the importance of using trusts for life insurance and asset protection.

Action Steps:

• Check your state pension status.
• Locate and consolidate your pensions.
• Learn about SSAS and its benefits for business owners.
• Review your estate planning, including wills, trusts, and powers of attorney.

Building a Family Wealth Legacy: Involving the next generation, sharing financial wisdom, and using family wealth structures to maintain and grow assets.

Practical Tips:

1. Don’t wait until 2027—start reviewing and organising your pensions now.

2. Put life insurance policies in trust to avoid unnecessary inheritance tax.

3. Use SSAS pension features like loanback and earmarking to support family wealth and business growth.

4. Download the Guide - Click here to join the waitlist for the upcoming step-by-step guide on inheritance tax and pensions. 

Resources mentioned in this episode

• Download the Guide: Click here to join the waitlist for the upcoming step-by-step guide on inheritance tax and pensions.

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