Here’s a question that might keep you awake at night: what do you tell clients who’ve spent years building pension pots specifically because they were IHT-free, only to discover that’s all changed?
On 21 July 2025, HMRC published their response to the pension IHT consultation, along with draft legislation that will bring unused pension pots into the inheritance tax net from April 2027. The writing’s been on the wall since Rachel Reeves’ October 2024 Budget announcement, but now we have the detail and it’s time to work out what this means for our clients.
As paraplanners, we’re about to face some of the most fundamental shifts in retirement and estate planning strategy we’ve seen in years. The days of treating pensions as the IHT-free golden goose are numbered, and clients will be looking to us for answers.
This isn’t just about understanding the new rules. It’s about completely rethinking how we approach pension planning, estate planning, and the delicate balance between the two.
Your crash course in the new pension IHT landscape
In what turned out to be an essential Assembly, we were joined by M&G’s Les Cameron to dive deep into the practical implications of these seismic changes. We strongly recommend reading M&G’s detailed response before watching the Assemly as it provides crucial context for our discussion.
During this Assembly, we evaluated the different options to mitigate pension-driven IHT liabilities, including:
- Are pensions dead? – separating the headlines from the reality for long-term retirement planning
- Is whole of life the answer? – when life assurance might fill the IHT gap
- Moving client money – the practical considerations of reshuffling portfolios
- Annuities vs drawdown – how the IHT changes affect this fundamental choice
- Bypass trusts – exploring whether trust structures can still provide solutions
What can you expect to take away?
You’ll leave this Assembly with a clear understanding of how the new IHT rules will work in practice and with strategies you can implement immediately to help clients navigate this changing landscape. We hope to give you the confidence to tackle those difficult conversations about restructuring retirement plans that took years to build.
Fair warning: there’s so much ground to cover that we may run slightly over our usual 60 minutes. If we do, we’ll schedule a follow-up session to tackle any outstanding questions.
Once upon a time, when taxes were relatively low, ISAs and unwrapped investments seemed like pretty obvious choices for clients’ money.
But the big cut in the capital gains tax allowance and rises in tax on gains and dividends has changed things. Tax wrappers that once seemed like more hassle than they were worth (like investment bonds) could now be the ideal vehicle – especially for higher rate taxpayers.
But which wrapper is right in which circumstances and why?
That’s the question that guest Neil Macleod from M&G’s technical team was invited to answer when he joined host, Leanne Pickering, for this Assembly.
What you’ll learn by listening
Over the course of one lunch hour, Leanne and Neil explored when bonds are more suitable, when offshore makes sense, and why the ‘best’ mathematical answer might not actually be the right choice for your client. In this Assembly you’ll:
- learn from real case studies that compare basic rate versus higher rate taxpayers
- find out how to use withdrawals strategically to fund ISAs
- discover why different asset types work better in different wrappers
- tackle those tricky questions about investing within trusts
- understand why paying a bit more tax sometimes makes perfect sense
You’ll discover that the right choice for your clients isn’t just about what the spreadsheet says but about the broader thinking
What’s more, once you’ve listened, follow the link below and you can request a record of 1 hour’s worth CPD too.
Last Monday (21 July 2025), the UK Government published draft legislation which means that, from April 2027, most unused pension savings and death benefits will count towards your estate when you die.
If you’re wondering…
- which pension benefits are in scope (and which aren’t)?
- who’s responsible for paying the tax?
- how will the income tax offset actually work in practice?
- what’s the timeline for implementation?
…you’re not alone.
So in this bonus podcast episode, host Richard Allum met up with Barnett Waddingham’s James Jones-Tinsley to talk through the Government’s planned changes, what they mean for paraplanners and your clients, and suggest practical steps that you can already take to help clients get ready for the change.
The measures, which feature in the Finance Bill 2025-26, could still change as the proposals make their way through Parliament from September. But if you’re wondering where things stand right now and what you should be thinking about for clients with decent-sized pension pots, this is a fantastic update that gives you the current picture.
Speaking of the Finance Bill…
If you’ve ever wondered how Budget measures become law, James met up with Leanne Pickering of Pivotal Paraplanning last year to walk through each step in the process. Follow the link for more:
Listen: From Parliament to paraplanner: How do Budget measures become law?
And speaking of pensions…
James has recorded a series of really helpful jargon busters on new and old pensions exclusively for the Assembly. Help yourself by following these links:
New pensions jargon: part one
Listen: A plain English guide to new pensions jargon: part one
Watch: A plain English guide to old pensions jargon: part one
New pension jargon: part two
Listen: A plain English guide to new pensions jargon: part two
Watch: A plain English guide to old pensions jargon: part two
And if that’s not enough and you want OLD pensions jargon, here are links to James’s trio of episodes:
Podcasts: old pensions jargon
Listen to part one: A plain English guide to old pensions jargon: part one
Listen to part two: A plain English guide to old pensions jargon: part two
Listen to part three: A plain English guide to old pensions jargon: part three
Videos: old pensions jargon
Watch part one: A plain English guide to old pensions jargon: part one
Watch part two: A plain English guide to old pensions jargon: part two
Watch part three: A plain English guide to old pensions jargon: part three
Event pages: old pensions jargon
Event details for part one: A plain English guide to old pensions jargon: part one
Event details for part two: A plain English guide to old pensions jargon: part two
Event details for part three: A plain English guide to old pensions jargon: part three
Remember our Assembly on annuity essentials back in March?
Over the course of one lunch-hour, Andy Powell from Standard Life walked us through the basics of annuities – how they work, the differences between pension and purchased life annuities, and the kinds of options available like inflation protection and guarantee periods.
Now annuity expert Andy is back and he’s taking things a little bit further.
In the second of his two-part guide to annuities essentials for paraplanners he talks to host, Richard Allum, about how annuities can feature as part of your clients’ retirement income strategies. For instance, among the practical planning tips that go beyond the basics, are things like:
- annuities can actually boost the value of the legacy client’s leave for loved ones
- annuities can be used as an asset class within broader portfolios
- and much more
After years of being out of fashion, annuities have been enjoying a bit of a renaissance lately. So what better time to refresh your annuities knowledge and – who knows? – maybe challenge your thinking about how they can contribute to a client’s retirement strategy these days?
Fancy topping up your annuities knowledge? Then tune in now.
In the second of two specially recorded bite-sized Assemblies, Barnett Waddingham’s James Jones-Tinsley returns to tackle six items of new pension terminology including:
- CDC (collective defined contribution schemes)
- PAA (pensions advice allowance)
- OTA (overseas transfer allowance)
- Crystallised and uncrystyallised pensions funds
- FP2016 or FP16 (fixed protection 2016)
- IP2016 or IP16 (individual protection 2016)
For each item, expect an easy-to-understand definition that also offers a bit of background per term.
In a world that’s awash with word soups and acronyms, James’s jargon buster offers a welcome source of straightforward explanations of often quite complex ideas.
You can also watch the video of this episode on Vimeo or the event page at our website.
Can’t get enough pensions jargon?
Then look out for part one, where James tackles even more new pension terms.
In the meantime, why not tune into James’s trio of old pensions jargon guides? Scroll down and follow the links to watch the videos and podcasts (and visit the event pages for each episode.)
After his popular ‘Plain English guide to old pensions jargon’ Barnett Waddingham’s James Jones-Tinsley has returned to record two specials on new pension terminology called – and we bet you’ll never guess this – ‘A plain English guide to new pensions jargon’ (parts one and two).
In part one, James’s conversation covers five essential terms:
- PCLS (pension commencement lump sum)
- LSA (lump sum allowance)
- LSDBA (lump sum death benefit allowance)
- TTFAC (transitional tax-free amount certificate)
- MPAA (money purchase annual allowance)
For each item, expect an easy-to-understand definition that also offers a bit of background per term.
In a world that’s awash with word soups and acronyms, James’s jargon buster offers a welcome source of straightforward explanations of often quite complex ideas.
You can also watch the video of this episode on Vimeo or the event page at our website.
Can’t get enough pensions jargon?
Then look out for part two, where James will tackle even more new pension terms.
In the meantime, why not tune into James’s trio of old pensions jargon guides here in podcast or video formats? (Or visit the event pages for each episode at our website.)
If you don’t feel all that confident about annuities, you’re not alone.
Once the default choice of guaranteed income in retirement for generations of UK pension savers, for a whole bunch of reasons, annuities had been falling out of favour for year and years.
Why annuities matter again
Higher interest rates and inflation have led to a revival of interest in securing certainty of income in retirement.
The trouble is that an emerging generation of paraplanners – and a sizeable chunk of the more established paraplanning population – had barely any recent experience of annuities.
So we invited Andy Powell from Standard Life to join us to explain:
- How annuities work
- What drives annuity rates
- The practical differences between pension annuities and purchased life annuities
- Why different providers offer different rates for similar circumstances
Tailoring annuities to client needs
During this Assembly, Andy explores the different ways annuities can be designed to meet different requirements. For instance:
- Rising payments: increasing the amount clients receive each year in retirement
- Safety nets: making sure payments continue for at least 5 or 10 years, even if you die
- Family protection: keeping payments going for your partner or someone else after you die
- Money-back features
Andy also covers newer developments like fixed-term annuities and platform-based solutions that let clients combine secure income with investment flexibility without splitting pension assets across different providers.
For paraplanners, perhaps one of the most valuable takeaways is understanding enhanced terms where, in contrast to other insurance products, health conditions actually increase and not decrease income.
This practical session will give you paraplanners useful knowledge to help clients weigh up their retirement income options. So why not watch or listen now?
The way pensions are treated for inheritance tax (IHT) is set for a big shake up in April 2027 when unused pension funds will count as part of a client’s estate and become liable to IHT.
In preparation for the change, the government announced a consultation on the liability, reporting and payment of IHT at last October’s Budget.
That consultation ended late in January 2025. But what are its conclusions likely to be? And what do paraplanners need to know so you, your firm and its clients are ready when the reforms go live?
What do you and your clients need to know?
Those are the questions that M&G‘s head of technical, Les Cameron, addressed when he joined us for an online Assembly to explores what the changes could mean for paraplanners and your clients (or clients of clients if you’re outsourced or freelancing).
What you can expect to take away from this Assembly?
Together with Assembly host Richard Allum, Les shared his thoughts on how the new IHT framework will affect pension death benefits after 2027. The conversation to covered things like:
- Whether it makes sense to think about taking money out of pensions earlier than planned
- Why bypass trusts might be making a comeback
- How the pension reforms could affect red-amber-green assessment
- Practical steps paraplanners can take now to prepare for the changes
Stop press: post-event answers to questions raised in the chat
There were loads of questions from paraplanners in the chat but, because we ran out of time, Les posted his responses to them in this thread at The Big Tent.
Scottish Widows’ pensions specialist (and Big Day Out 2024 ‘Quiz the Expert’ alumnus), Gareth Davies, joins host, Richard Allum, for the follow-up to his popular ‘Is there a recipe for successful retirement income advice?‘ Assembly which we held back in June.
Why a second helping?
An unbelievably busy Chat meant that Gareth fielded a fair few comments and questions which left too much ground to cover in just one lunch hour. So Gareth agreed to come back later in the year to conclude his survey of the retirement advice landscape.
In this concluding Assembly, Gareth and Richard…
- Revisit the annuities vs. drawdown debate – examining the case for ‘annuities plus drawdown’, exploring the latest annuity features, and discussing strategies for annuitising fully crystallised pension pots.
- Dig into pension death benefits: they’ll consider the options and potential pitfalls of death benefits – plus focus on the importance of nomination forms and their regular review.
- Assess the effect of regulatory change: if there’s time, they’ll consider how the FCA’s thematic review is influencing retirement income advice, what it may mean for centralised retirement propositions, and what it means for your ongoing assessment of suitability.
It makes for a lunch-hour Assembly that’s packed with valuable insights and practical ideas that you can apply to client cases right away.
Perennial Assembly favourite, Les Cameron of M&G Wealth, joined us to share his thoughts on Labour’s Budget on 30 October.
As well as the fact that Rachel Reeves made history by becoming the first woman to deliver a budget as Chancellor of the Exchequer, were there measures that are sure to feature when Budget history is written?
Or were the widespread jitters among savers and investors ill-founded as Labour delivered its first Budget since Alistair Darling’s on 20 April 2010 – no fewer than 5,334 days earlier.
What actually happened?
Were the headlines screaming about capital gains and inheritance tax? How about pension tax relief and fuel duty? Or national insurance and the British ISA? Perhaps even VAT on school fees or measures affecting non-doms? And what about a wealth tax?
Les was on hand to offer his thoughts and insights, and address lots of questions and comments posted by paraplanners in the Chat.
So did it turn out to be one of the most consequential Budgets of recent years? Was it more of a ‘pitch-rolling’ statement in preparation for future measures? Or something else altogether?
Tune in and find out.