Pension shake-up in six months will push inheritance tax receipts to £14.5bn, Standard Life warns

From the Newshound archive · first published 11 October 2026.

From April 2027, unused pension funds will be brought into inheritance tax calculations for the first time, with Standard Life cautioning that frozen thresholds, climbing property values and the pensions change are together creating a "perfect storm" for British families. Receipts are already forecast to surge from £8.7bn this year to £14.5bn by 2030/31. The Government recorded its highest-ever monthly inheritance tax take as recently as June 2026.

The standard nil-rate band has been stuck at £325,000 for years, pulling more estates above the line where the 40 per cent charge kicks in as asset values continue to rise.

Families have just months to act, with specialist funds offering potential relief — though advisers warn the options carry significant investment risk.

The prospect of a zero-inheritance-tax Britain has reportedly all but vanished, with hopes of either a higher threshold or outright abolition under the current government continuing to fade.