No. HMRC has confirmed that death-in-service benefits paid from registered pension schemes (including NHS, civil service and most workplace schemes) remain outside the inheritance tax estate from 6 April 2027. The change applies to unused pension funds, not death-in-service lump sums.

Yes. The spousal exemption under Section 18 of the Inheritance Tax Act 1984 continues to apply to pensions passing to a spouse or civil partner. The exemption applies to spouses and civil partners only, not unmarried partners.

Yes, but the tax advantage narrows. Unused defined contribution pension funds enter your estate for inheritance tax from 6 April 2027 under Finance Act 2026. The spouse exemption still applies. For non-spouse beneficiaries, the combination of IHT and income tax on inherited drawdown could exceed 50% above age 75.

For a married couple worried about inheritance tax exposure, a joint life annuity offers a clear benefit. The continuation income paid to the surviving spouse falls outside the inheritance tax estate under HMRC's published position. A single life annuity pays a higher starting income but stops on first death, leaving the surviving partner reliant on other pension assets now inside the IHT estate from April 2027.

Annuity income you spend during your lifetime is never in your estate because it has been consumed. From 6 April 2027, payments under a guarantee period and value protection lump sums are inside the inheritance tax estate unless paid to a spouse, civil partner, or charity. Joint life annuity income paid to a surviving spouse remains outside inheritance tax.

Neither is better in the abstract. Drawdown keeps your fund invested and flexible but leaves it inside your estate from 2027. An annuity removes the capital from your estate but ends your access to it.

Income paid to a survivor under a joint-life annuity sits outside your estate for inheritance tax, even where the survivor is not your spouse. If you die after age 75, that income is taxable at the survivor's marginal rate of income tax.

This depends on your inheritance tax planning objectives. Since pensions are generally IHT-free, it may be beneficial to use other assets first and preserve pension wealth to pass to beneficiaries. However, this must be balanced against income needs, tax efficiency, and recent legislative changes.

Yes, you can nominate a trust to receive your pension death benefits. This provides additional control and protection, especially useful for blended families or when beneficiaries need asset protection. The pension scheme trustees must agree to pay the benefits to the trust.

Generally, pensions are outside your estate for inheritance tax purposes if death benefits are paid at the trustees' discretion. However, from 6 April 2027, unused pension funds will be included in the estate for inheritance tax purposes, subject to available allowances. The treatment depends on the type of pension and when death occurs.