Treasury shoots down call for six-month pension pot IHT deadline

31 Mar 2026

Minister rules out any change to standard six-month deadline to pay inheritance tax to HMRC regardless of any complexities related to pension pots

In a letter to the Finance Bill Sub-Committee, Dan Tomlinson, Exchequer secretary to the Treasury, addressed a host of issues raised by the House of Lords’ committee on unused pension pots being brought into scope of inheritance tax (IHT) from April 2027, which one expert likened to ‘mixing oil and water’.

Tomlinson rejected calls for an extension of the IHT deadline to 12 months and refused to introduce a soft-landing period waiving late payment interest and penalties for two years.

Tomlison, Treasury minister responsible for HMRC, was unmoved by the pleas from Lords.