Apportioned inheritance tax, the beneficiary's income tax on top and the two HMRC dates, for deaths from 2027-04-06
Scope of the 2027 rule
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Inheritance tax charged on the pot
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GBP
Beneficiary income tax after the IHT relief
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GBP
Total tax taken from the pot
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GBP
Net the beneficiary keeps
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GBP
Effective rate on the pot
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%
HMRC interest starts
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IHT account and penalties from
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Handling more than one estate? Export each estate as a .csv audit row and set browser alarms for the 6-month interest date and the 12-month account date on every case you enter. Get the full version — $60 $60 once · one licence key per person or team seat · 7-day full refund. A UK IFA charges 150-350 GBP an hour in 2026 and an IHT solicitor 265-390 plus VAT, so one estate’s pension figure is a 300 GBP job.
Apportioned IHT, not a flat 40 percent Nil-rate bands spread across the whole estate, so the pot only carries its pro-rata share. On the built-in defaults a 500000 pot is taxed 245000 and the beneficiary keeps 255000, an effective 49 percent; a flat 40 percent of the pot would have said 200000. Finance Act 2026, Royal Assent 2026-03-18.
Income tax on top, with the IHT slice relieved For a death at 75 or over the beneficiary still pays income tax, but not on the part equal to the IHT due on that pension: 425000 of the default 500000 pot, not the whole pot. An additional-rate beneficiary on a fully taxable pot lands at 67 percent, not the 85 percent a naive stack gives.
The two dates the personal representatives own HMRC interest runs from the end of the sixth month after the month of death - 2027-12-31 for a 2027-06-10 death - and the account and penalties follow twelve months after the month of death, 2028-06-30. Personal representatives report and pay, not the scheme administrator.
Spouse, charity and death in service stay out A pot passing to a surviving spouse or civil partner, or to a registered charity, carries no IHT; death-in-service benefits, dependants' scheme pensions and joint-life annuities stay outside the member's estate. Income tax can still apply to a spouse when the member died at 75 or over.
Deaths from 2027-04-06 only The tool dates the death and says which side of 2027-04-06 the estate falls on. Before that date the pot is outside the estate and only the age-75 income tax applies, so the same 500000 pot can pass whole.
Get the complete version $60
This page is the working piece. The full pack has everything below.
Apportioned inheritance tax, the beneficiary's income tax on top and the two HMRC dates, for deaths from 2027-04-06
A UK IFA charges 150-350 GBP an hour in 2026 and an IHT solicitor 265-390 plus VAT, so one estate's pension figure is a 300 GBP job.
You type seven things about one estate - the unused pot, the rest of the estate, the nil-rate bands available, who receives it, whether the member died at 75 or over, the beneficiary's tax band and the date of death - and it returns eight answers: scope, the IHT on the pot, the income tax, the total, the net, the effective rate, the interest date and the account date.
Who is it for?
UK personal representatives, private-client paralegals, paraplanners and IFAs. From 2027-04-06 the personal representatives, not the pension scheme, report and pay the inheritance tax on an unused pot, so the person doing the estate paperwork needs the number long before probate is granted.
Why will a chatbot not do this?
Most models were trained before the Finance Bill got Royal Assent on 2026-03-18 and still say pensions sit outside the estate. The ones that know about the change usually charge 40 percent of the whole pot and then add income tax to the whole pot again, which overstates the bill badly.
What is free and what needs the key?
Every calculation is free and unlimited: all seven inputs, all eight outputs, in the popup and on the web page, with no watermark and no run limit. The 60 dollar key adds a different job - a .csv audit row per estate and browser alarms for the six-month interest date and the twelve-month account date.
What would this cost from a person?
A UK independent financial adviser charges roughly 150 to 350 pounds an hour in 2026 and an inheritance tax solicitor 265 to 390 plus VAT, so having one estate's pension figure worked up is about a 300 pound job. The extension is 60 dollars once, for every estate you handle.
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Free in the browser. The full version is a one-time licence, 7-day refund.