What’s changed since april 2025?
Since April 2025, several updates have begun shaping pension planning in the UK. The biggest future change is the government’s decision to bring unused defined-contribution pension pots into Inheritance Tax from April 2027. This ends the long-standing position where most pensions sat outside the estate, meaning beneficiaries—especially where someone dies after age 75—may face both income tax and IHT on what’s left in the pot.
HMRC has also tightened how higher-rate tax relief is claimed. From September 2025, individuals may need more evidence when claiming relief on personal pension contributions, and claims can no longer be made by phone. This won’t affect routine contributions but may lead to more checks for larger payments.
The State Pension has risen again under the triple lock, with the full new amount now around £11,973 a year. At the same time, the government has begun a new review of the State Pension age, meaning future changes are possible.
Meanwhile, the main pension allowances are unchanged: the Annual Allowance stays at £60,000 and the Money Purchase Annual Allowance remains £10,000, with the tax-free lump-sum rules continuing under the current caps.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
