With Labour’s proposed changes to the taxation of pensions, many families could be facing a much bigger Inheritance Tax (IHT) bill than they realise.

Under the current rules, pensions are exempt from Inheritance Tax — which is one of the reasons they’ve long been seen as one of the most tax-efficient ways to pass on wealth.

However, under the new proposals, pensions could soon be included in your estate for IHT purposes. For many savers, particularly those with larger pension pots, that could mean a major increase in tax payable on death.

For example, a £400,000 pension fund could, from April 2027, create a potential £160,000 IHT liability.

To help people understand what this could mean for them, we’ve launched a free online Inheritance Tax Calculator. It allows you to estimate your potential IHT liability under both the current rules and the proposed new regime.

“These proposed changes could fundamentally alter how pensions are viewed in estate planning,” says Scott Gallacher, Director at Rowley Turton.
“We created this calculator to help people quantify the potential impact for themselves — and to encourage them to start the conversation with their financial adviser or accountant now, rather than waiting until the rules change.”

You can try the calculator here:
👉 Use the IHT Calculator

If you’d like to discuss what these changes might mean for your own situation, our team of independent financial advisers can help you explore practical ways to protect your family’s wealth.