How will inheritance tax apply to pensions from 2027?

Families are facing a major shake-up to the inheritance tax regime from April 2027 when unused pensions will form part of estates for inheritance tax (IHT) purposes.Historically, many pension pots have fallen outside the IHT net, making them a useful vehicle to transfer wealth through generations. But under new rules, announced in the 2024 Autumn Budget by then chancellor Rachel Reeves, unused pension funds will no longer be able to be passed down without facing an IHT liability from 6 April 202