- 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.◆
⚠ For professional adviser use only - not for client distribution. Illustrative only. Figures depend on individual circumstances and a personalised illustration. Business Relief is not guaranteed. Appropriate independent financial advice should be taken before any decision is made.
Lifetime Pension Income Service - Illustration Tool

Lifetime Pension Income Service Calculator

This models the tax on a pension fund on death - Inheritance Tax and (for clients over 75) income tax on death benefits - and shows the position with the Flexible Pension Annuity, where income tax is removed from day one and IHT after two years via Business Relief.

Illustrative tool. Enter the client’s details below. Figures are indicative and should be confirmed with a personalised illustration; charges and individual circumstances will affect the outcome.
On death - without the FPA
Inheritance Tax (40%)-
Income tax on death benefits-
Net to beneficiaries-
With the FPA - after 2 years
Inheritance Tax (BPR)-
Income tax (Preference Share)-
Net to beneficiaries-
Beneficiaries better off by - with the Flexible Pension Annuity (illustrative, before ongoing charges)

Illustrative only. IHT is shown at 40% on the fund (unless a spousal exemption applies); income tax on death benefits applies where the client is over 75. The FPA column reflects income tax removed from day one and IHT removed after the two-year Business Relief qualifying period; the net figure deducts a one-off 2% establishment charge (capped £10,000) but not ongoing charges. Business Relief is assessed by HMRC on death and is not guaranteed. Provided through [Firm Name] (FCA No. [FCA No.]). Appropriate independent financial advice should be taken before any decision is made.