The rules are changing and from April 2027 and unspent pension pots will fall within the scope of inheritance tax. Draft legislation is now published, and there’s plenty for paraplanners to get to grips with.
This Assembly looks at how we got here, and where we need to go with less than nine months to go. We looked at what the May 2026 HMRC technical note and draft legislation actually confirmed, what it means in practice, and, what it means for the planning advice paraplanners are helping to shape right now.
On 1 July 2026, host Richard Allum was joined by guest Mark Devlin, Senior Technical Manager at M&G, to practically address some of the trickier questions the changes raise.
Together, they covered:
- The background: how we got here, and what the consultation process did and didn’t address
- Discretionary vs directed schemes: a refresher on the distinction and why it matters for IHT treatment
- How the new process will work in practice, including the role of personal representatives
- Planning implications: is it still worth funding a pension, and at what level?
- Balancing pension use for retirement income against IHT exposure, and keeping an eye on taxable funds for beneficiaries
- A common income tax misconception, and why some recent press coverage has muddied the water
What can you expect to take away?
At the end of this Assembly, you’ll have a better understanding of the confirmed changes, a better grasp of the planning considerations that flow from them, and some practical frameworks to bring to your paraplanning work, whether you’re reviewing existing pension strategies or helping to shape new ones.
