TaxCalcUK
2026/27 TAX YEAR

Pension Inheritance Tax Calculator 2027

See how April 2027 could change what your family pays

Compare Inheritance Tax under current rules with the rules from 6 April 2027, when most unused pensions count toward Inheritance Tax.

From 6 April 2027

Most unused pension pots will count as part of what you leave for Inheritance Tax. These are future rules for deaths on or after 6 April 2027. This calculator shows current rules and the April 2027 rules side by side.

Home, savings, investments and other assets, minus debts such as a mortgage.

£

Common amounts:

Unused pension pot that someone could inherit. Do not include death-in-service payouts.

£

Common pension amounts:

This can unlock an extra tax-free Inheritance Tax allowance on the home.

If a late spouse or civil partner did not use all of their Inheritance Tax allowance, unused amounts can often transfer to you.

Your estimated Inheritance Tax

From April 2027

Your family could pay £60,000.00 more in Inheritance Tax from April 2027.

Current rules

£0.00

Pension usually outside Inheritance Tax

From 6 April 2027

£60,000.00

Most unused pensions included

Difference
£60,000.00
Who inherits in this estimate
Children or other people

Why these figures differ

From 6 April 2027, most unused pension pots are counted as part of what you leave for Inheritance Tax. That can use up more of the tax-free allowance and increase the bill when children or other people inherit.

Simplified estimate only. It models a straightforward Inheritance Tax position and does not cover trusts, lifetime gifts, business relief, or Income Tax on inherited pension withdrawals.

From 6 April 2027 Inheritance Tax
£60,000.00
Value counted for Inheritance Tax
£650,000.00
Pension included?
Yes

From 6 April 2027 breakdown

Tax-free allowances

Standard tax-free amount£325,000.00
Extra home allowance£175,000.00
Total tax-free amount£500,000.00

Tax

Amount above tax-free allowances£150,000.00
Inheritance Tax at 40%£60,000.00

Showing the from-6 April 2027 treatment, where the pension is included for Inheritance Tax.

Key Inheritance Tax figures

£325,000.00

Standard tax-free amount

£175,000.00

Extra home allowance

£2,000,000.00

Home allowance starts reducing

About the Pension Inheritance Tax Calculator 2027

Use this calculator to estimate how the April 2027 pension Inheritance Tax change could affect your family in pounds. It compares Inheritance Tax under current rules with the position from 6 April 2027, when most unused pensions count toward Inheritance Tax.

Enter a simple picture of what you own, how much is in your pension, and who would inherit. You get estimated Inheritance Tax today, estimated Inheritance Tax from April 2027, and the difference.

Official sources: HMRC technical note on Inheritance Tax on pensions, unused pension funds and death benefits, and Inheritance Tax overview.

Frequently Asked Questions