HMRC's April 2027 Pension Tax Change: What UK Retirees Need to Do Now

From 6 April 2027, HMRC will bring most unused pension funds and death benefits into your estate for Inheritance Tax for the first time — a confirmed change under the Finance Act 2026, not a rumour. At the same time, the personal allowance freeze means the State Pension is now sitting almost exactly at the tax-free threshold, dragging more pensioners into paying income tax than ever before.

In this video, we break down exactly what's changing for UK retirees — fiscal drag, shrinking dividend and capital gains allowances, underclaimed Pension Credit, and the new pension inheritance tax rules — using only confirmed HMRC and gov.uk sources, so you know exactly what applies to you and what to check before the rules change.

If this helped clear up what's actually changing (rather than what the headlines make it sound like), subscribe to Retired UK — we break down HMRC and DWP changes in plain English as soon as they're confirmed, so you're never caught off guard.

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