Worried About Changes to Inheritance Tax and Your Pension?
Take Steps to Protect Your Wealth Today
New IHT Rules Are Coming. Discover How to Protect Your Estate and Pension Today
Get expert IHT planning tailored to the 2027 pension changes
From April 2027, unused pensions will no longer be exempt from Inheritance Tax (IHT). That means, for the first time, your pension could push your estate above the IHT threshold, leaving your loved ones with a 40% tax bill. If you haven’t reviewed your estate plan or pension strategy recently, now is the time. A few smart steps today could protect your family's wealth for tomorrow.
Seeking Professional Tax Advice
At WTT, our tax advisory team specialises in Inheritance Tax planning and estate management. Our goal is to help you pass on more of your wealth, securely, legally, and with peace of mind. We can provide you with professional guidance, advising you on:
What your total estate looks like
IHT implications
Legitimate planning opportunities
On-going reviews
.gif?width=1080&height=400&name=Untitled%20(1).gif "A Guide to IHT")
2027 IHT Rule Changes Explained
From April 2027, most unused defined contribution pensions will be included in your taxable estate for IHT purposes. This change could mean a 40% tax charge on your estate. Seeking professional advice is more important than ever to understand what’s changing and how to prepare.
Reducing Your IHT Exposure
With strategic planning, it’s possible to take steps reduce your IHT exposure compliantly and efficiently. We help you explore options like gifting, trusts, insurance strategies and efficient use of allowances to make sure more of your wealth goes to your loved ones.
Strategic Estate Planning
The new rules place the reporting and payment responsibility on personal representatives, not the pension provider. That means more complexity and risk should they be unprepared. Our experts are on hand to help you plan right and avoid costly mistakes.
.png?width=2000&height=1414&name=Untitled%20(5).png "What's changing with IHT?")
Frequently Asked Questions
Q: Will all pensions be taxed under the new IHT rules?
A: No. From April 2027 unused defined contribution pensions will generally be included as part of your estate. Additionally some Defined Benefit schemes will be caught within the IHT net. Certain overseas pensions may remain exempt, as will lump sums left to charities.
Q: How much can I pass on tax-free?
A: Currently, the standard IHT nil-rate band is £325,000 per person, plus up to £175,000 residence nil-rate band if passing a main home to direct descendants. Anything above this threshold is subject to an IHT charge of 40%.
Q: Can life insurance help cover my Inheritance Tax liability?
A: Yes. A whole-of-life insurance policy written in trust can provide your beneficiaries with a tax-free lump sum specifically to cover the IHT bill. This can be an effective way to preserve your estate’s value, ensuring your loved ones aren’t forced to sell assets to pay the tax.
Q: How do trusts help reduce IHT exposure?
A: Trusts allow you to move assets out of your estate while maintaining some control over how they’re used. By placing pension death benefits or life insurance proceeds into a trust, you may avoid IHT on those assets. However, trusts come with legal and tax considerations, so it’s essential to seek expert advice before setting one up.
Q: Is professional advice really necessary in response to these rule changes?
A: Yes. The upcoming rules are complex and have wide-reaching consequences. A tailored plan can significantly reduce your IHT exposure and prevent costly mistakes. Our tax specialists can help ensure your estate is protected and your loved ones aren't burdened.
Tax Advice
Future Planning
Our range of tax planning and advisory services can help safeguard you, your family and your assets. Our services offer future protection with tax planning tailored to you and your circumstances.
Accountancy
Accounting Services
WTT Accountancy is here to help shoulder the burden of the accounting process at your request, by undertaking certain administrative tasks, giving you more time to focus your efforts elsewhere.
Legal Services
Stay compliant
We understand the specific nuances of the tax and legal requirements surrounding the contracting workforce. By working across the entire supply chain, we can ensure all parties are compliant.
"I was involved in a complex and drawn-out HMRC investigation. WTT navigated every challenge with professionalism. They protected my interests, kept me informed, and ultimately brought the matter to a successful close." Ex-Contractor
“We were concerned about the impact of IHT on our family home. WTT guided us through available reliefs and helped us restructure our estate planning. Their expertise gave us peace of mind for our future.” High-Net-Worth Estate Planning
“I had years of crypto trading history and no idea where to begin with taxes. WTT helped me untangle it all and made sure I stayed compliant while minimising my liability. Crypto Investor
Our Tax Specialists
Meet Our Team
WTT Group provides expert, award-winning advice to help individuals and businesses navigate a wide range of comprehensive tax matters.
The tax landscape is undergoing continuous transformation, marked by increasingly intricate legislation and stringent legal requirements. Our vast knowledge and experience on tax, legal and accounting issues puts us in a unique and specialist position to provide all-round support to our clients.
Our Tax Team is led by Tom Wallace. Tom joined WTT in 2017, setting policy and strategy for clients having their tax affairs enquired into after a 20 year career with HMRC, primarily in tax investigations. As a qualified tax inspector, he led teams across business segments from global household names to mid-size businesses. After joining the newly formed Complex Evasion team he investigated offshore structures, providing a unique insight into tax compliance.
Got Some Questions?
Get In Touch
If you have any queries or were wishing to discuss any of our services in more detail, our team of experts are always on hand to answer any questions you may have. For a no obligation discussion about your options, or for advice on a particular matter, contact us at:
T: +44 (0)20 3468 0000
Tom Wallace
Director of Tax
thomas.wallace@wttconsulting.co.uk
+44 (0)20 3468 0000
