UK Pensions: IHT Reporting Rules Finalised, VFM Timeline Staggered
UK pension trustees and administrators must update death-benefit processes by 6 April 2027 under finalised HMRC information-sharing regulations for the new inheritance tax treatment of pensions.
Final regulations implement information-sharing requirements between schemes, personal representatives, and HMRC for the new IHT regime on death benefits, effective for deaths on or after 6 April 2027. Notably, payment of a death-in-service benefit is no longer a reportable event. HMRC will issue further technical guidance on withholding and payment notices later this summer. Separately, the government updated its pensions reform roadmap, confirming DB surplus reforms take effect in H1 2027 and the new DC value-for-money regime applies from 2028 to larger schemes and 2029 to remaining occupational DC schemes. HMRC also tightened VAT recovery guidance on pension scheme administration costs, narrowing employer recovery options and removing prior tripartite-agreement guidance; industry has sought clarification. Levy-rate consultations and draft rules on authorised member surplus payments are open through early September 2026.