2027 Inheritance Tax & Pensions Shake Up: Everything You Need to Know
In this special WealthTalk episode, Christian Rodwell shares the replay of a live webinar with WealthBuilders founder Kevin Whelan and SSAS director Paul Brooks on the major inheritance tax (IHT) changes coming in April 2027. From that date, any unspent pension pots will be counted as part of your estate on death, potentially dragging many more families into the 40% IHT net. Kevin and Paul explain what’s changing, how it affects pensions, property and businesses, and the practical steps you can take now to protect your family from unnecessary tax.
WealthTalk - money, wealth and personal finance. · Paul Brooks, Kevin Whelan
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Show Notes
Key Topics Covered:
1. What Changes in April 2027
- Unused pensions will count towards inheritance tax.
- Anything above the tax-free limit may be taxed at 40%.
- More families will be affected due to frozen allowances.
2. Executors, Lost Pensions and Hidden Traps
- New burdens and risks for executors who must locate and report all pensions.
- The scale of “lost pensions” and how to track them down.
- When to consider consolidating multiple pots and when to seek advice.
3. Income vs Capital and Smart Gifting
- IHT as a tax on capital, not income.
- Annual allowances, the 7‑year rule and “gifts with reservation”.
- How gifts out of surplus income can be unlimited and IHT‑free if well documented.
4. Pensions, Annuities and Who’s Affected
- Which pensions are not treated as capital (state, final salary, annuities).
- Which are caught by the new rules (personal pensions, SIPPs, SSAS, DC workplace schemes).
- Pros and cons of using annuities to swap capital for income.
5. SSAS Pensions and Multi‑Generational Planning
- What a SSAS is and who can qualify (limited company owners).
- Using SSAS to consolidate pots, invest entrepreneurially and involve adult children.
- Strategies like contributions for children, earmarking and loanback to shift value down the bloodline.
6. Life Cover, Wills and the Family Wealth Fortress
- Why life insurance should be written in trust to avoid swelling your estate.
- Using whole‑of‑life, second‑death cover to fund an inevitable IHT bill.
- The basics everyone should have in place: will, LPAs, and an annual “estate stock take”.
Actionable Takeaways:
- Assume the 2027 rules will affect you if you have pensions and other assets – start planning now.
- Calculate your current estate and repeat annually to see how close you are to IHT thresholds.
- Trace and tidy up old pensions; don’t leave a mess for your executors.
- Learn the difference between gifting capital and gifting surplus income – and document income gifts carefully.
- Review life cover and trusts; consider SSAS if you’re a business owner wanting to build and pass on wealth efficiently.
Resources & Next Steps:
- Join the Waitlist and Get Your Free Inheritance Tax & Pensions Guide - Be the first to receive this essential guide as soon as it's ready
- WealthBuilders Membership: Free access to guides, webinars, and community
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