- days to April 2027◆Finance Act 2026 takes effect 6 April 2027◆BPR qualifying period is 2 years · act now to start the clock◆Finance Act 2026 · Royal Assent 20 March 2026. April 2027 is now less than 12 months away. For clients over 75, income tax on death benefits can be eliminated from the day of transfer. The 2-year BPR clock starts immediately.◆- days to April 2027◆Finance Act 2026 takes effect 6 April 2027◆BPR qualifying period is 2 years · act now to start the clock◆Finance Act 2026 · Royal Assent 20 March 2026. April 2027 is now less than 12 months away. For clients over 75, income tax on death benefits can be eliminated from the day of transfer. The 2-year BPR clock starts immediately.◆
Finance Act 2026 · Royal Assent 20 March 2026

Pension IHT Calculator - Model Your Client's Position Under Finance Act 2026

From April 2027, pension funds will face both Inheritance Tax and income tax simultaneously. For many clients, this creates a combined charge of up to 80% - a double tax that did not previously exist.

For clients already over 75, this is a live planning issue today, not a future risk. The income tax charge on death benefits has applied since 2015. IHT is new from April 2027.

There is a structured, FCA-regulated solution that eliminates both taxes - the income tax charge from the day of transfer, and IHT after two years.

↓ Download the compliance pack
£500,000 pension · client over 75 · no spousal exemption
IHT @ 40%−£200,000
Beneficiary income tax @ 45%−£135,000
Net to children£165,000
33p in every pound reaches the next generation
With the FPA · after 2 years
IHT - 100% BPR£0
Income tax via Pref Share£0
Net to children£472,700
⚠ For professional adviser use only - not for client distribution. The information on this site does not constitute financial, tax or legal advice. Tax treatment depends on individual circumstances and is subject to change. BPR is not guaranteed - past claim success does not guarantee future outcomes. The value of pension investments can go down as well as up. Independent advice required before any recommendation is made to a client.  Full risk warning ↓
Live Illustration · Adjust inputs to see your client's numbers

Pension IHT Tax Calculator

Enter your client's details to see the precise impact of Finance Act 2026 on their pension - and the saving available through the Flexible Pension Annuity. All figures are illustrative.

Client Details
£
£100k£3m
£
Charges applied: 2% establishment fee (capped £10,000) · 1% AMC (capped £1,600 pa) over 2 years · Preference Share £750 · For age 75, fees shown include all adviser and product set-up fees
Without the FPA · From April 2027
£165,000
33p in every pound reaches beneficiaries
IHT @ 40%−£200,000
Income tax on residual−£135,000
With the FPA · After 2 years
£472,700
94p in every pound reaches beneficiaries
IHT - BPR relief£0
Income tax via Pref Share£0
Total benefit to beneficiaries
Better off by £307,700
67%
effective tax rate without FPA
ItemWithout FPAWith FPA
Pension fund
Establishment fee-
IHT£0
Income tax on death£0
Net to beneficiaries
If death occurs within the 2-year BPR window
Income tax via Pref Share: £0 (immediate)
IHT: (BPR not yet qualified)
Net to beneficiaries within 2 years: - still significantly better than without the FPA.
Email me these results
Receive this analysis directly to your inbox - useful for your client file and for sharing with colleagues
∨
✉
Email me these results
Receive this analysis directly to your inbox - useful for your client file and for sharing with colleagues
∨
Get a personalised illustration for this client
Book a meeting to discuss the full analysis.
All figures are illustrative only. Assumes no investment growth and 2-year holding period for BPR. Charges: 2% establishment fee (capped £10,000), 1% AMC (capped £1,600 pa), Preference Share £750. BPR outcomes are not guaranteed. Individual financial advice required. Tax-Free Income and Estate Planning Service / [Firm Name], FCA No. [FCA No.].