Utilising your pension to cut inheritance tax

1 min read

Inheritance tax was thought to be ripe for reform in last year’s Autumn Budget but, as it happened, it was left untouched for another tax year.

What that means is the £325,000 nil-rate band has been in place since 2009, while the 40% standard rate of tax that can apply on any amount above that figure goes back even further than that.

This form of death duty is levied on our estates, which consist of any property, money and possessions.

While we don’t pay it ourselves, it can take a sizable chunk out of what your beneficiaries receive, especially if you are not in control of your estate.

There are many estate planning strategies, ranging from using ISAs and trusts to writing a legally-valid will and making potentially-exempt transfers, all of which we can help you with to form a comprehensive plan.

Another one of these tactics involves using your pension to reduce the value of your estate, ensuring you leave more of your wealth to your loved ones rather than HMRC.

Failing to do this, particularly if you have an estate worth more than £500,000 including your main residence, or up to £1 million if you’re in receipt of your deceased spouse’s full unused entitlement, leaves the door open for the taxman.

Read more on Utilising your pension to cut inheritance tax here:

You might be interested in...

  2. The EOT Relief Has Changed, But the Opportunity Hasn’t

    15 Dec 2025

    The EOT Relief Has Changed, But the Opportunity Hasn’t

    The 2025 Autumn Budget reduced the Capital Gains Tax relief on Employee Ownership Trust (EOT) transactions from 100% to 50%. Understandably, this has raised questions. TC Group explains how EOTs are still a strong exit route.

    Learn more

    The EOT Relief Has Changed, But the Opportunity Hasn’t
  4. Play icon

    24 Sep 2025

    TC Group Podcast | Employee Ownership Trusts

    This podcast answers the common questions we're asked about Employee Ownership Trusts (EOTs). Growing in popularity across sectors, when the time comes to exit your business, have you considered an EOT?

    Watch now

    TC Group Podcast | Employee Ownership Trusts
  5. Play icon

    24 Sep 2025

    TC Group Podcast | Effective succession planning in the built environment

    This podcast focuses on Effective succession planning in the built environment. At TC Group, we pride ourselves on taking the time to understand your personal objectives, equipped with sound advice and a tailored, insight-driven strategy.

    Watch now

    TC Group Podcast | Effective succession planning in the built environment