Pension inheritance tax calculator 2027 (widget)

Home (your share)

Market value of what you own

Savings, ISAs, investments

Everything else you own

Unused pension pots

Drawdown and untouched pots, lump sums on death

Age at death

75 or over: heirs pay income tax on the pension

Family situation

Home left to children or grandchildren

Heirs sharing equally

Children, or anyone else named

Each heir’s own income

Salary or pension a year, sets their tax rate

More: debts, gifts, charity, Scotland, spreading withdrawals

Debts and funeral costs

Share of the estate to charity

10 % or more can bring the 36 % rate

Gifts in the last 7 years

After the yearly exemptions

Years before death (largest gift)

Heirs draw the pension over

1 = all in one tax year

Heirs pay Scottish income tax

Inheritance tax on a death from 6 April 2027

£120,000

That is £120,000 more than for a death before that date, because the pension now counts.

	Before 6/4/27	From 6/4/27
Estate counted	£500,000	£800,000
Tax-free bands used	£500,000	£500,000
Inheritance tax at 40.0 %	£0	£120,000
of which on the pension	£0	£45,000
Heirs’ income tax on the pension	£134,934	£114,684
Each of 2 heirs keeps	£332,533	£282,658

Of each £100 of pension passed on, tax takes £53 from April 2027, against £45 before.

Residence band £175,000. Estimate only, not advice.

How this is calculatedRules of the Finance Act 2026 for deaths from 06/04/2027. Business and agricultural relief, trusts and foreign assets are not modelled.