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UK households warned over new HMRC pension rules which kick in in 2027New research has found that fewer than half of UK adults are aware of upcoming pension rule changes set to take effect

in 2027.NewsChristian Abbott Audience Writer14:20, 03 Jun 2025UK households warned over new HMRC pension rules which kick in in 2027 UK households face a "hidden horror" in pensions that

could leave families with an unexpected tax bill from HMRC. New research has found that fewer than half of UK adults are aware of upcoming pension rule changes set to take effect in 2027.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, warns lees than half of us are aware of this looming issue. She said: "There’s a hidden horror in our pensions that could

have a big impact on our families – but less than half of us are aware of it."

‌ Only 48 per cent of people are aware that the Labour Party government plans to make pensions subject to inheritance tax from 2027, according to a survey of 1,200 people undertaken by

Opinium on behalf of Hargreaves Lansdown in April 2025.

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Ms Morrissey concluded: "It's important to be aware of these looming changes, but not let worry push you into making action that you later come to regret."

Article continues below From April 6 2027 the government will include unused pension funds and death benefits within the value of a person’s estate for inheritance tax purposes.

Lump sum death benefits, even with recipients chosen at the discretion of a trustee, will also become part of a person’s estate and become liable for IHT. It will be the responsibility of

Pension Scheme Administrators (PSAs) to report and pay any IHT due from unused pensions and death benefits funds.

Dependants’ scheme pensions will be exempt from IHT. Some lump sums paid to charities will also be exempt. The inheritance tax nil-rate band remains locked at £325,000 following a prior

extension to 2028.

Article continues below Ms Morrissey said: "With this in mind, it’s really important that you don’t give so much away that you potentially leave yourself short of cash later on in life, when

you still might need it.

"Any gifting plan should give yourself room to manoeuvre, should you find yourself needing care later in life, for instance. You don’t want to be in a position where you need to ask loved

ones to return money at a later date."