Free Tool
Pension IHT Exposure Projector
From 6 April 2027, most unused pensions fall within Inheritance Tax, a change now legislated in Finance Act 2026. See how that exposure could grow year by year to your retirement. Built for UK expats, not a generic UK tool.
Project your pension’s IHT exposure
A few details about your pension and estate.
These figures are illustrative only and are not financial advice. The projection grows your unused pension pot at an assumed constant rate, with no charges, inflation, or income drawn, and estimates only the Inheritance Tax that the pension could add to your estate under the Finance Act 2026 rules taking effect from 6 April 2027. It assumes the full residence nil-rate band applies. It does not model your full estate or cross-border tax, and it excludes trusts, lifetime gifts (potentially exempt transfers), business property relief, and agricultural property relief. Actual outcomes will differ. Speak with a regulated specialist before making any financial decisions.
The unused pension funds you expect to leave, before drawing an income.
Property, savings, and investments, excluding the pension above.
The April 2027 change
What changes for pensions and IHT
For most people, pension funds currently sit outside the estate for Inheritance Tax. From 6 April 2027, most unused pension funds and death benefits will be brought within the estate for IHT purposes, a change legislated in Finance Act 2026 (Royal Assent 18 March 2026). For larger pensions, that can mean a charge of up to 40 percent on the part above the available allowances.
For UK expats, the picture is layered on top of cross-border tax and residence considerations, which is why a focused projection over time is useful. This tool illustrates the pension-specific exposure only. For your full estate position, use the Inheritance Tax Illustrator, and to understand transfer options, see the QROPS guidance.
Source: HMRC technical note: Inheritance Tax on pensions (Finance Act 2026, effective 6 April 2027). Last reviewed 2 July 2026. This tool is illustrative and educational only and is not financial advice. Reference this tool: “Pension IHT Exposure Projector, Pharos Introductions, www.pharosintroductions.com/tools/pension-iht-projection”.
Common questions
- What is changing for pensions and Inheritance Tax in April 2027?
- From 6 April 2027, most unused pension funds and death benefits will be included in your estate for Inheritance Tax purposes, a change legislated in Finance Act 2026. Until then, most pensions sit outside the estate. This tool illustrates how that change could affect a UK pension over time.
- Who is this tool for?
- It is built for internationally mobile UK nationals who hold UK pensions while living abroad. It is illustrative and educational only, and it is not financial advice.
- How is the projection calculated?
- It grows your pension pot by an assumed annual rate to retirement and estimates the Inheritance Tax the pension alone would add to your estate under the April 2027 rules, using the standard nil-rate bands. The growth rate is an assumption, not a forecast.
- Does this replace advice?
- No. Pharos Introductions is an introducer service. We do not provide financial advice. The figures are estimates to inform your own thinking and a conversation with a regulated specialist.