23/10/2026
10,500 more estates expected to pay Inheritance Tax. Nearly 40,000 facing higher bills.
These are HMRC's projections for the 2027/28 tax year, following changes to the Inheritance Tax (IHT) treatment of pensions.
And for business owners, the implications could be particularly significant.
From 6 April 2027, most unused pension funds and pension death benefits will be included in estates for IHT purposes.
For business owners who have accumulated substantial pension savings alongside business assets, commercial property or proceeds from a company sale, this could create additional tax exposure for their families.
There are two important changes to consider:
🟣 £2.5 million - Since April 2026, the first £2.5 million of qualifying agricultural and business property can receive 100% relief from IHT, with qualifying assets above this threshold generally receiving 50% relief.
🟣 6 April 2027 - Most unused pension funds will become part of the estate for IHT calculations, potentially increasing the value subject to tax.
For those holding commercial property within a SIPP or SSAS, there may also be practical challenges. A substantial IHT bill could arise before assets can be sold or sufficient cash becomes available.
If you're planning to sell your business, retire or pass wealth to the next generation, now is the time to review how these changes could affect your succession plans.
At Anglian Wealth Management, we help business owners consider their personal financial arrangements alongside their longer-term business and family objectives.
N.B: Tax rules and reliefs can change and their impact depends on your individual circumstances.
Source: HM Revenue and Customs policy paper: Inheritance tax on unused pension funds and death benefits – 21 July 2025
