If my pension goes to my wife, does any Inheritance Tax apply?

No Inheritance Tax is due on pension passing to a spouse or civil partner, because the spouse exemption continues to apply after 6 April 2027. The pension then becomes part of their position, so it may be taxed when they die. If they inherit after your death at 75 or over, they pay income tax on what they draw.

Is a defined benefit pension caught by the new Inheritance Tax rules?

A dependants' scheme pension paid from a defined benefit scheme to your spouse, civil partner or dependent child is excluded from the charge. A lump sum death benefit paid from a defined benefit scheme can still fall within it, unless it is a death in service benefit. Check what your scheme would pay on your death and to whom.

Does it matter if I die before or after 6 April 2027?

Yes. If you die before 6 April 2027, your unused pension is outside your estate under the existing rules, even if the benefits are paid after that date. HMRC's second technical note confirms that pension inherited before 6 April 2027 can, however, form part of the beneficiary's own pension for Inheritance Tax if the beneficiary dies after that date.

Does life cover written in trust help with Inheritance Tax on a pension?

A life policy written in trust can provide cash outside your estate to help your family pay the Inheritance Tax bill, which avoids the need to withhold or sell assets. Whether a policy suits you, and at what cost, is a regulated product decision that needs a regulated adviser. The tax point is that the policy proceeds must be held in an appropriate trust to stay outside your estate.

Can I still get the Pension Tax Allowance if I take my 25% tax-free cash?

The tax-free part of a pension withdrawal is not taxable income, so on HM Treasury's description it should not count towards the £13,036.40 limit. The taxable part of any withdrawal does count. The legislation in Finance Bill 2026-27 will set out the exact definition of total income.