Families brace for IHT pension pain

New rules set to take effect in April 2027 will subject unused pension funds to inheritance tax (IHT) for the first time. Families must decide whether to pay a proportional share of the IHT from the pension or cover it from other assets. The former could reduce the overall tax bill in some circumstances. But with a six-month deadline from the date of death to settle, the possibility of multiple pensions to navigate and the chance of combining this with income tax on withdrawals, families face a difficult period.