Policy paper
Inheritance Tax on Pensions: Technical Note 2
This further technical note provides additional information to that provided in technical note 1 relating to Inheritance Tax on pensions announced at the Autumn Budget 2024.
Documents
Details
This technical note provides further information about reforms to the Inheritance Tax treatment of pensions legislated for in Finance Act 2026. From 6 April 2027, most unused pension funds and pension death benefits will be brought within the value of a deceased person’s estate for Inheritance Tax purposes.
This note provides more information about:
- notional pension property (unused pension funds and pension death benefits) and how it will be treated for Inheritance Tax purposes
- information sharing requirements
- withholding notices and operation of the process
- pensions direct payment scheme notices and operation of the process
- clearance
This technical note is not draft guidance. HMRC will continue to publish secondary legislation, guidance and supporting materials ahead of implementation in April 2027.
Updates to this page
Published 27 August 2026