Tax and pension experts have repeatedly warned the government and HMRC that bringing pension pots into inheritance tax (IHT) will be a ‘heavy administrative burden’ for executors creating undue complexity for estates.

A second HMRC technical note explaining more detail on the IHT treatment of pension pots was released just before the Bank Holiday weekend, with HMRC stressing ‘this technical note is not draft guidance’, adding the government ‘expects to lay further consequential statutory instruments ahead of 6 April 2027’. The framework for the new pension pot tax is set out in Finance Act 2026.

HMRC has also set out a timetable for the next six months with plans for further technical note on international pensions this autumn, with official HMRC guidance released in spring 2027 as well as a communications campaign targeted at affected groups starting later this year.