Are pensions subject to inheritance tax?

From 6 April 2027 most unused pension funds and death benefits are brought into the estate. Death-in-service benefits are excluded.

How much can a married couple pass on tax-free?

Up to £1,000,000 when both nil-rate bands and both residence nil-rate bands are available and the home goes to direct descendants.

Calculators

Inheritance tax calculator

Inheritance tax is 40% of the estate above the £325,000 nil-rate band, plus up to £175,000 more when a home passes to children or grandchildren (tapered away above £2,000,000). From 6 April 2027 most unused pension funds count towards the estate too, which this calculator models when you choose a date of death on or after that day.

Last reviewed 6 October 2026 · rules version rules@2026-10-06#25 · HMRC, HMRC

Enter the estate to see the inheritance tax due, which allowances apply, and how the 2027 pension change affects it.

Questions

Are pensions subject to inheritance tax?: From 6 April 2027 most unused pension funds and death benefits are brought into the estate. Death-in-service benefits are excluded.
How much can a married couple pass on tax-free?: Up to £1,000,000 when both nil-rate bands and both residence nil-rate bands are available and the home goes to direct descendants.