Live
Search...
Live

Inheritance Tax on Pensions Calculator

Discover how much inheritance tax you could need to pay - and explore ways to reduce it.
Results before and after 6th April 2027
Pension included
(after 6th April 2027)
Gross Estate
Gross Estate tooltip
0
Residence NRB
Residence NRB tooltip
0
Nil Rate Band Available
Nil Rate Band Available tooltip
0
IHT Calculation
IHT Calculation tooltip
0
IHT Amount
IHT Amount tooltip
0
Pension not included
(after 6th April 2027)
Gross Estate
Gross Estate tooltip
0
Residence NRB
Residence NRB tooltip
0
Nil Rate Band Available
Nil Rate Band Available tooltip
0
IHT Calculation
IHT Calculation tooltip
0
IHT Amount
IHT Amount tooltip
0
Change in IHT due to pensions being included
Change in IHT tooltip
0
Important:This calculator doesn’t include any gifts you may have given in the last seven years. These gifts can affect how much of your estate is tax-free when you pass away. If you’ve made any gifts during that time, they could reduce your tax-free allowance and might lead to extra tax if you die within seven years of giving them. It’s important to think about any gifts before relying on these results, and you should speak to a financial adviser for help.
Business Relief (and Agricultural Relief): This calculator doesn’t include special tax rules that might apply to business or farming assets. If you own a business or farmland, there may be ways to reduce the amount of tax owed when you pass away. These rules aren’t included here, so it’s important to speak to a financial adviser to understand if they apply to you.
Cohabiting couples: This calculator is made for people who are either single or legally married/in a civil partnership. If you live with a partner but aren’t married or in a civil partnership, the rules are different and you might not get the same tax benefits. Your situation could be more complicated, so it’s best to get advice that’s tailored to you.

Discover how much inheritance tax your family may face paying on your pension after April 2027.

Our pensions inheritance tax calculator helps you understand your estate’s potential IHT liability and explore simple ways to reduce it through smarter pension planning.

Why Use This Calculator

From April 2027, pension funds will start being included in inheritance tax (IHT) calculations.

This calculator helps you see the impact before and after that date.

You can use it to:

  • Estimate your future IHT bill.
  • Understand how pensions affect your estate value.
  • Plan tax-efficient strategies early.
  • Identify if professional advice could help you reduce liability.

It’s always worth speaking to an independent financial adviser if you need tailored help with your financial planning, or you can explore our pension planning guides for more information.

How the Inheritance Tax on Pensions Calculator Works

  • Enter your key financial details (property, savings, investments, pension value, debts).
  • Choose whether you’re single, married, or in a civil partnership — and whether you have children.
  • The calculator compares your IHT exposure before and after 6 April 2027, when pensions begin to be included in your taxable estate.
  • You’ll instantly see how this change could affect your estate and how much tax your beneficiaries may need to pay.

What the April 2027 Rule Change Means for Pension Inheritance Tax

Currently, pension funds can generally be passed onto loved ones tax-free if you die before 75, or taxed as income after 75.

But from 6 April 2027, these funds will be subject to IHT as part of your estate.

This means your beneficiaries could pay 40% tax on any amount exceeding your IHT allowances.

Ways to Reduce Pension Inheritance Tax

compare-icon
Platform's selected