From 2027 It Will Form Part of Your Taxable Estate
Major tax changes are coming in 2027 that will affect millions of people with UK pension assets — including expats.
Under the new rules, UK pensions will no longer be exempt from Inheritance Tax (IHT). This means their value will be included within the calculation of your taxable estate upon death.
For many families, this change will push estates above the IHT threshold for the first time, resulting in a potential 40% tax bill on pension wealth that has taken a lifetime to build.
If you have one or more UK pensions — especially if you now live abroad — a review has never been more important.
Your UK Pension Will Be Counted in Your Estate from 2027
Historically, most UK pension assets sat outside the scope of IHT.
But from 2027, the value of your pension(s) will be added to your estate alongside property, savings and investments.
Many expats already own property in the UK or abroad, meaning your estate value may be higher than you realise. With pensions now included, even those who never considered themselves “wealthy” may find their family facing an unexpected IHT bill.
The result: more estates pushed into taxable territory — and less of your wealth reaching the people you intended to support.
Why a Pension Review Is Now Essential
A professional UK pension review allows you to:
1. Understand the true value of your existing pensions
Many people have multiple old workplace pensions, private pensions or frozen plans left behind in the UK. Their combined value may be much higher than expected — especially after years of compounding investment growth.
2. Forecast future values based on realistic growth assumptions
Knowing not only what your pension is worth today but what it is projected to be worth in 10–20 years is crucial.
This projection allows you to assess whether you may exceed the IHT thresholds and what level of tax your family could face.
3. Consolidate multiple policies into one clear, manageable structure
Consolidation can make your pension easier to manage during your lifetime and significantly easier for your beneficiaries to deal with when the time comes.
A single, well-structured pension plan can also improve:
- Visibility of performance
- Investment efficiency
- Fee transparency
- Flexibility in how and when benefits are taken
4. Explore strategies to reduce future IHT exposure
Once you know your total current and projected pension value, you can begin planning effectively.
Potential planning strategies include:
- Gifting earlier to reduce the size of your estate
- Spending pension assets during your lifetime while relying on non-pension assets later
- Using regulated financial planning tools such as trusts, life cover, or tailored drawdown strategies
These decisions should always be taken with qualified advice, especially for expats with cross-border tax considerations.
Acting Early Gives You More Options
2027 may seem some way off, but tax planning is most effective when done early.
A review today can:
- Highlight risks now
- Give you years of strategic planning time
- Provide opportunities to restructure your pension
- Reduce future tax exposure for your loved ones
Waiting until new rules take effect may limit the options available.
Book Your No-Obligation UK Pension Review
At Futurus Global Wealth, our qualified UK pension advisers specialise in working with expats in Switzerland, the EU and the UAE.
Your complimentary review will:
✓ Assess the value of all your UK pensions
✓ Forecast future growth and potential IHT exposure
✓ Identify consolidation or optimisation opportunities
✓ Highlight any steps that could reduce your future tax burden
Book your no-obligation review today:
Simply complete the form below and one of our UK qualified pension advisors will contact you.
Protect your family, understand your potential IHT liabilities, and ensure your pension wealth is structured for the future.
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